From November 6 to November 9, 2025, master’s students from the 11th Tsinghua-SAIS Dual Degree Program (TSDM) and other programs within the Department of International Relations at Tsinghua University conducted field research in the cities of Hebi and Anyang in Henan province. This field practice was led by Professor Tang Xiaoyang, Head of the Department of International Relations. With strong support from the Hebi Municipal Government and local enterprises, the cohort gained in-depth insights into the development of local high-tech industries and cultural industries. They visited key enterprises along industrial chains related to aerospace, semiconductors, and automobiles, and examined cultural industries with rich historical and revolutionary cultural heritage.
I. Introduction
Located in northern Henan, at the eastern foothills of the Taihang Mountains, Hebi was established as a provincial-level prefecture-level city in 1957 with State Council approval. Evolving from the former Hebi Mining District, it initially gained prominence for its coal industry and has since undergone a transformation from a resource-based city to a diversified industrial hub. Named after “仙鹤栖于南山峭壁” (cranes nesting on the southern mountain cliffs), Hebi has historically served as a key transportation hub and commercial node in northern Central China. The Qi River flowing through its territory has nurtured historical and cultural traditions represented by “Book of Songs culture,” Qibin Scenery,” and ancient porcelain kiln sites. This rich heritage provides a unique cultural foundation and geographical advantage for today’s development of emerging industries such as electronic information, automotive components, biomedicine, and new materials. Advancing Chinese-style modernization at this new historical juncture requires not only new technologies, industries, and models but also the values and spiritual momentum to sustain long-term investment and persistent innovation. Maintaining strategic resolve and developmental resilience while navigating external uncertainties, critical technological bottlenecks, the green transformation of traditional industries, and the demands of high-quality urban development has become a shared challenge for local governments and enterprises. Guided by this question, the team conducted field research in Hebi and Anyang cities on the theme “The Spirit of the Red Flag Canal and Modern Industrial Development.” Over three days, the team explored four major sectors—“Chip & Aerospace—Automotive Electronics—Biochemical & Environmental Materials—Cultural Tourism & Heritage”—while anchoring their research in the Red Flag Canal spirit. They visited Longxin Zhongke (Hebi) Technology Co., Ltd., the Tianzhang Satellite Intelligent Manufacturing Base, aerospace-related enterprises, Tianhai Electric Group Co., Ltd., Zhongwei Chemical Fiber, Henan Feitian Biotechnology Co., Ltd., Henan Tianjia Photonics Technology Co., Ltd., and Xintuoyang Bioengineering Co., Ltd. The team also conducted field visits to cultural and revolutionary education sites, including Dabi Mountain in Jun County, Jun County Ancient City, Panshitou Reservoir, and the Red Flag Canal Scenic Area. This enabled a systematic understanding of Hebi City’s industrial structure evolution, urban transformation pathways, and the revitalization of its revolutionary heritage resources.
II. Why the Spirit of the Red Flag Canal Remains Essential Today
(1) The History and Engineering Practice of the Red Flag Canal
Lin County (now Linzhou City) at the eastern foothills of the Taihang Mountains has long struggled for survival under the shadow of drought. Located in a warm-temperate, semi-humid continental monsoon climate zone, rainfall here is heavily concentrated in midsummer. Missing the optimal planting window by even a little could mean complete crop failure. The mountains were riddled with fissures, causing severe water seepage that prevented even the scarce rainfall from truly nourishing the land. Over time, the locals resignedly summed up their plight: “We rely on the heavens for rain and on transport for water.” A folk rhyme passed down through generations poignantly captures their hardship: “Heavy rains wash away the harvest, scant rains leave seeds unseen; Toiling year-round, we eat one bowl but never have another.” This is no exaggerated lament, but a stark portrait of Lin County’s long struggle against drought, where people subsisted on bran and wild greens.
Looking back through history, Lin County never ceased its efforts to wrest water from nature. For centuries, simple attempts like building canals, digging wells, and constructing reservoirs persisted. Yet constrained by the scale of projects, limited social mobilization capabilities, and the shackles of the old land system, these measures remained largely stopgap solutions, unable to fundamentally alter the drought conditions. By the early 1950s, among the county’s millions of acres of farmland, fewer than 10,000 acres could be reliably irrigated. Most fields remained at the mercy of the heavens. Wheat yields averaged only 70 to 80 jin per mu, and autumn grain harvests rarely exceeded 100 jin. Poverty weighed on every household like heavy dust. Water scarcity was not merely an agricultural challenge; it tested the very dignity and continuity of civilization in this land.
After the founding of the People’s Republic of China, the Lin County Party Committee seized the opportunity presented by the nation’s emphasis on water conservancy construction, mobilizing the masses to build canals and reservoirs. By around 1959, the county had constructed over 1,300 canals of varying sizes and 36 reservoirs, establishing the initial framework for the three major irrigation districts: South, North, and Central. For a time, everyone felt hope finally enter their lives, with some even exclaiming, “The Communist Party can lead the Dragon King by the nose!” Yet natural disasters often strike without mercy. That same year, an unprecedented drought devastated the newly built water conservancy system, leaving it nearly destroyed: rivers ran dry, reservoirs emptied, and farmlands cracked. Drinking water for people and livestock became critically scarce once more. Reality cruelly reminded the people that to truly escape Lin County’s water shortage, they must venture beyond the mountains to find water. From the winter of 1959 to early 1960, three survey teams dispatched by the County Party committee traversed the Taihang Mountains north and south, conducting repeated explorations. Ultimately, their last hope rested on the Zhang River within Pingshun County, Shanxi. The Zhang River maintained a stable water volume, even carrying some flow during dry seasons. If its waters could be diverted to Lin County, it might completely transform the fate of this land. After repeated negotiations between the two provinces, the “Diverting the Zhang River into Lin County” project officially commenced in 1960. At the mobilization meeting, County Party Secretary Yang Gui declared the now-famous words: “Raise the red flag high and cross the Taihang Mountains!” From that moment, the canal gained a name symbolizing determination and fighting spirit—the Red Flag Canal.
Figure 1: Red Flag Canal Monument
Yet the decision to build the canal was far from easy. At a time of nationwide economic hardship and material scarcity, a poor county with less than 400,000 residents was undertaking a massive water project that would cross mountains and sheer cliffs, pushing the limits of what was possible. Some scoffed: “How big is Lin County’s lotus leaf that it dares to wrap around such a huge rice dumpling?” Yet the county committee remained resolute and level-headed: if not now, there might never be another chance.
Underlying this was even more complex geopolitical factors. The Zhang River originates in Shanxi, a province equally plagued by severe water shortages. The current willingness of both provinces to cooperate represented a window of opportunity; any shift in policy or circumstances could instantly close it. Precisely for this reason, the “Zhanghe to Lin County” project was not a rash impulse, but a courageous and decisive decision made amid overlapping political, natural, and economic risks—both a gamble and an inevitable act of self-rescue. The hardships of constructing the Red Flag Canal are far beyond what modern people can imagine. In an era of scarce machinery and primitive tools, the canal’s construction relied almost entirely on human labor. The sheer cliffs of the Taihang Mountains starkly demonstrated nature’s cruelty to the people of Lin County. The 1500 kilometer canal route required leveling over a thousand mountain peaks and excavating more than two hundred tunnels. Among these, the famously perilous “Youth Tunnel” has been frequently recounted by later generations. Over 300 laborers, suspended by hemp ropes hundreds of meters above the abyss, drove steel picks into the rock and detonated explosives. With each hammer blow, the picks bounced off the stone, sparks flying everywhere, yet barely making progress. To loosen the mountain, they devised a primitive technique: “explosive nesting,” drilling small holes and detonating them in layers, inch by inch, to peel away the rock. From site selection to breakthrough, the Youth Tunnel consumed over a year. Every moment of peril and perseverance is etched into the rock’s veins along that sheer cliff face.
The hardships came not only from the mountain itself but also from daily life. It was an era when the entire nation battled adversity, and scarcity of supplies was the norm. Laborers on the construction site subsisted year-round on bran dumplings and wild vegetable soup, relying on mountain herbs and coarse grains to sustain their day’s physical labor. When construction tools were scarce, they sought assistance from the military or improvised explosives using ammonium nitrate fertilizer; when funds fell short, they organized teams to take on external projects, channeling every penny earned back into the water conservancy effort. Despite these hardships, no one faltered—they understood that every ounce of endurance endured would help their homeland escape its millennia-old water scarcity.
The heaviest toll was paid in lives. Over the decade-long canal construction, more than 180 workers lost their lives in the Taihang Mountains, and over 250 sustained injuries that left them disabled. Many families faced the heartbreak of another departure after mourning: when a father perished, his son took his place; when a brother was crippled, his sister carried on. Countless cadres “lived and ate at the construction site, passing their homes three times without entering,” all because the canal remained unfinished and the water had yet to flow. These sacrifices were not abstract numbers, but the abrupt halt of vibrant lives, the painful relay completed by countless families, and the deep, blood-stained and tear-etched patterns carved into the history of the Red Flag Canal. Yet it was precisely this immense sacrifice that brought the first surge of canal water gushing through the Taihang Mountains in 1969. That year, the man-made river winding around the mountain slopes truly turned the dream of “transforming heaven and earth” into reality. For the first time, Lin County’s land gained a stable water source, expanding irrigated acreage by hundreds of thousands of mu. Grain yields soared, and the economic structure of this impoverished county quietly transformed. The Red Flag Canal has never been merely a water conservancy project. It represents a profound social mobilization, a spiritual epic co-authored by countless ordinary people, and a turning point in destiny that an entire generation fought for with their will and flesh.
(2) The Formation and Essence of the Red Flag Canal Spirit
After the completion of the Red Flag Canal, looking back on this chapter of history, people are invariably struck by a simple yet profound truth: during an era of extreme scarcity, a poverty-stricken county managed to mobilize 300,000 laborers who spent a decade carving a thousand-mile “artificial sky river” through the sheer cliffs of the Taihang Mountains. This feat transcended not only technological boundaries but also the conventional limits of human willpower. Thus, a question lingered in people’s minds: What force transformed this seemingly “impossible project” into reality?
Over time, people gradually realized that the perseverance, creativity, and sacrifice etched deep into the annals of history had long crystallized into a profound spiritual tradition. Later, academia and policymakers summarized this tradition as: self-reliance, hard work and pioneering spirit, unity and cooperation, and selfless dedication. Yet for those who participated, these sixteen words were not a preconceived slogan. They emerged organically from their forged practices—a collective spiritual self-shaping forged under extreme conditions by an entire generation.
Below, following historical logic, we will systematically examine the four elements of the Hongqi Canal spirit in greater detail, revealing how they evolved from the construction site into timeless values.
Self-reliance: Shifting from passive endurance to active mastery of destiny. When construction began on the Red Flag Canal, the nation had only recently emerged from the scars of war, with countless tasks awaiting revival. Amidst severe nationwide resource shortages, solving long-standing local problems depended less on external aid and more on the resolve for self-reform. In Lin County, water scarcity had become an inescapable existential crisis. Facing intergenerational poverty caused by drought, the people of Lin County did not pin their hopes on “waiting” or “relying on others.” Instead, they made a choice driven by a simple yet powerful logic: no matter how difficult life became, they would rely on their own strength to cleave the mountains and bring water to their land.
It was against this backdrop that “self-reliance” became the collective consensus throughout Lin County. Over 80% of the project’s initial funding came from the county’s own resources. Some even contributed their life savings to the commune to prevent any delay. When technical expertise was lacking, they trained “local experts” on the job site. When tools were scarce, every household donated iron implements. When explosives were unavailable, they experimented repeatedly with homemade methods. When machinery was absent, they used their shoulders and hands to replace its power. In the recollections of many participants, one phrase recurs: “We couldn’t wait, we couldn’t rely on others—only we could save ourselves.” The essence of self-reliance transcended mere problem-solving; it embodied a profound sense of agency. Development wasn’t the result of passive waiting but the product of proactive action; destiny wasn’t predetermined but could be rewritten. Every chisel mark on the Red Flag Canal bears witness to the awakening of the people’s spirit of self-reliance.
Figure 2: Learning from the Red Flag Canal Memorial Hall
Hard work and entrepreneurship transformed effort into a solid path for creating the future. The “hardship” of building the Red Flag Canal has become a household legend today, but what truly moved people was not the suffering itself, but the proactive stance the people of Lin County displayed in the face of adversity. The Youth Tunnel represented the most perilous stretch of the canal’s construction. Cliffs as sharp as blades, winds as biting as knives—workers secured ropes around their waists, braced themselves against the rock face with hands and feet, and chiseled away at the stone, hammer stroke by hammer stroke. Below lay the bottomless abyss of the Zhanghe River valley. Every step risked a deadly fall; every blast threatened a catastrophic collapse. Some say it was a group of ordinary laborers engaging in a “hand-to-hand struggle” with the mountains. Yet on the construction site back then, these people did not perceive themselves as undertaking a monumental feat. They simply viewed it as the only path to the future: no matter how hard the mountains, they must be conquered; no matter how perilous the caves, they must be carved; no matter how great the hardship, they must press forward. Here, pioneering through hardship was not a form of oppressive or passive endurance, but a resolute and steadfast stride toward the future. The people of Lin County understood profoundly: without water diversion, there would be no tomorrow; without crossing the mountains, future generations would remain at the mercy of the heavens. Precisely because of this, “the greater the difficulty, the more we press forward” became the shared conviction of the entire county, a framework for action embraced by officials and citizens alike. In this sense, arduous entrepreneurship was both the concrete practice of laborers and a collective value choice formed by the local governance system under challenging conditions: in an inescapable predicament, the only correct direction was to confront adversity head-on.
Unity and collaboration channeled immense creative energy into collective action. If self-reliance embodied a region’s autonomy and hard work reflected a forward-looking spirit, then unity and collaboration revealed the institutional secret behind the Red Flag Canal’s success. Spanning mountains, river basins, villages, and departments, the canal project far exceeded the capabilities of any single commune or unit. The entire county’s population of 300,000 was systematically organized. From agriculture to commerce, from industry to supply and marketing, unprecedented coordination emerged across all systems: communes provided mutual labor support, the supply system ensured tool availability, the industrial sector assisted with component manufacturing, the grain department managed worker rations, and county Party cadres lived and worked alongside the people at construction sites for extended periods.
This coordination was not ad hoc assistance but a genuine “systemic operation.” All pursued a common goal, shared risks, and confronted challenges together. Along the Red Flag Canal, stones engraved with the names of those responsible for constructing each section stand at regular intervals, highlighting each individual. One by one, these stones, bearing names imbued with responsibility and mission, shaped the canal’s creation. It was not merely a waterway but a demonstration of social organizational capacity—the ability to mobilize, integrate, and coordinate diverse resources. The Red Flag Canal is hailed as the “man-made celestial river” not only for reshaping the landscape but for demonstrating the immense energy unleashed by grassroots society when driven by a powerful, shared purpose.
From an institutional perspective, this unity and collaboration embody a mature form of grassroots governance: unified objectives, integrated organization, shared resources, and shared responsibility. It demonstrates that in public undertakings and major projects, true strength stems from organized, disciplined, and consensus-driven collective action—not the solitary courage of individual actors.
Through selfless dedication, the people of Lin County placed their individual lives within a greater cause. The final pillar of the Red Flag Canal spirit is selfless dedication—the most difficult to fully explain in institutional terms, yet the most profoundly moving force.
Over the decade-long construction period, more than 180 workers lost their lives in the Taihang Mountains, and over 250 left the site permanently disabled. Many families chose to continue contributing after their grief: when a father sacrificed his life, his son took his place; when an elder brother fell, his younger sister stepped up; cadres “lived and worked at the site long-term, passing by their homes three times without entering”; some young people even remained at the most dangerous tunnel entrances on the eve of their wedding day. When we revisit these stories today, they transcend mere accounts of “risking life and limb”, they embody a spiritual orientation that intertwined individual existence with collective endeavor.
Selfless dedication was not an abstract slogan but an emotional force deeply etched into every ordinary moment on the construction site. When working on sheer cliffs, workers would often instinctively shield their comrades from falling rocks with their own bodies. Others volunteered for the most perilous sections, dispelling hesitation with a simple “I’m young, I’ll go first” despite knowing the risks. At tunnel entrances, someone would always conduct repeated safety checks after work, prioritizing others’ security over their own exhaustion. Even during the hungriest, most difficult days, some quietly gave their rations to comrades whose strength had been drained, simply because “he needed it more than I did.”
These acts may have seemed insignificant at the time, but when countless such gestures of warmth, sacrifice, and mutual aid converged, they formed the warmest, heaviest, and most irreplaceable foundation of the Red Flag Canal spirit. It profoundly reveals that the completion of any great undertaking is never due to a single heroic individual, but rather to countless ordinary people who willingly give silently, lift each other up, and collectively sustain the courage and hope that transforms a place’s destiny.
(3) The Contemporary Spirit of the Red Flag Canal
In October 2022, shortly after the conclusion of the 20th National Congress of the Communist Party of China, General Secretary Xi Jinping visited the foothills of the Taihang Mountains. He toured the Red Flag Canal Memorial Hall and inspected the operation of the water diversion hub along the main canal. Here, he solemnly emphasized: The spirit of the Red Flag Canal shares the same lineage as the Yan’an Spirit. It is an indelible historical memory of the Chinese nation, forever stirring the soul. We must use the spirit of the Red Flag Canal to educate the people, especially the youth, so that everyone understands that socialism was forged through struggle, hard work, and even sacrifice—not only in the past, but equally so in the new era. The General Secretary also said with deep emotion that the Red Flag Canal itself is a monument, recording the heroic spirit of the people of Lin County who refused to accept fate, refused to admit defeat, and dared to battle heaven and earth. Without the relentless toil, blood, and even lives sacrificed by our predecessors, we would not enjoy today’s prosperous life. We must forever remember them.
Against this backdrop, questioning “why do we still promote the spirit of the Red Flag Canal today?” transcends mere academic inquiry—it becomes a fundamental inquiry about direction: what spiritual compass shall we use to understand the past, measure the present, and guide the future? The fact that the General Secretary has placed the spirit of the Red Flag Canal on par with the Yan’an Spirit, explicitly incorporating it into the core of the Chinese Communist Party’s spiritual spectrum, demonstrates that it is not merely a localized memory but a value coordinate of overarching significance—a crucial entry point for explaining “Why China Can.” For us, the spirit of the Red Flag Canal is not a backdrop draped over the scene but a master key for understanding reality, organizing materials, and conducting research. Therefore, this report does not merely list companies or pile up data indicators but attempts to connect seemingly scattered corporate practices by weaving the spirit of the Red Flag Canal as its central thread.
Historically, the spirit of the Red Flag Canal epitomizes the self-redemption and self-transcendence achieved by the people of Lin County amid extreme deprivation. It crystallizes self-reliance, arduous entrepreneurship, solidarity, and selfless dedication within a specific time and space. It teaches us that even without modern equipment, sufficient funding, or specialized teams, a place can carve a “channel of life” and “channel of happiness” into sheer cliffs through unwavering conviction and meticulous organization. This spirit is not an abstract concept derived after the fact, but the cumulative result of countless concrete choices. Acting without waiting or relying on others embodies self-reliance; pressing forward despite known hardships represents arduous entrepreneurship. Unity and coordination means working together in concert; sacrificing personal comfort for the greater good, risking one’s life for the cause, embodies selfless dedication. Promoting the spirit of the Red Flag Canal requires, first and foremost, retelling these specific, micro-level choices to today’s audience as fully and meticulously as possible, ensuring the stories that unfolded on the construction site do not fade away silently in the river of time.
Based on our field research in Hebi, the spirit of the Red Flag Canal has not remained confined to memorial halls and historical archives. Instead, it has been internalized and woven into the very fabric of corporate development logic, becoming an invisible yet ever-present value foundation. For a city that began with coal mining and has proactively shifted toward high-end manufacturing, electronics, biotechnology, and new materials in its latest industrial transformation, self-reliance, hard work, unity, and selfless dedication have become the spiritual compass guiding enterprises through complex environments with steadfast direction and resilience.
Figure 3: Youth Tunnel of the Red Flag Canal
Regarding self-reliance, a cohort of Hebi-based enterprises—from semiconductor and automotive electronics startups to aerospace suppliers—are collectively demonstrating a fundamental truth through their practices: core capabilities must be forged through relentless effort; they cannot be purchased or passively acquired. They dare to make long-term investments in R&D, refine and iterate their processes repeatedly, and insist on maintaining autonomy and control over critical links. They hold the fundamental consensus that “the fate of technology must be grasped in our own hands.” This perseverance shares the same spirit and resolve as the determination of the people of Lin County back then to “bring water to their own fields.” Their entrepreneurial spirit manifests in a clear-eyed assessment of their developmental stage: many companies willingly endure short-term pressures on long-cycle projects, eschewing the pursuit of immediate scale and profits. Instead, they focus their energy on strengthening foundations and honing core competencies, viewing “enduring hardship” as an essential phase on the path to higher levels of development—not a cost to be avoided.
Collaboration is increasingly evident at both the industrial and regional levels. Whether it’s the coordination between automakers and parts suppliers or the shared development of technical platforms, testing capabilities, and market channels among upstream and downstream enterprises within industrial parks, these efforts are underpinned by a shared understanding that “the entire city is one chessboard, and industry is one chain.” Companies are no longer merely competitors but collaborators within a shared ecosystem. Through joint innovation, collaborative R&D, and co-developed standards, they gradually forge a cohesive structural force. This spirit of collaboration carries a clear legacy from the unified organization that spanned communes, systems, and regions during the construction of the Red Flag Canal.
As for selfless dedication, it is most evident among entrepreneurs and key engineering personnel: some have remained steadfast on the technical frontlines for over a decade; others voluntarily relinquish personal gains to advance the enterprise’s long-term vision; still others willingly open their resources and expertise to local upstream and downstream enterprises, viewing the progress of the entire industry as their own glory. These seemingly ordinary choices subtly perpetuate the value orientation of “putting collective interests first.”
This chapter devotes considerable space to reviewing the history and spirit of the Red Flag Canal, concluding with a deliberate response to “Why promote the Red Flag Canal spirit today?” Its purpose is to establish a clear logical chain for subsequent sections: first, using the Red Flag Canal to answer “Where do we come from?”; then, through enterprise research, contemplate “Where are we headed?”; first, clarifying at the spiritual level “What should we uphold?”; then, observing at the practical level “How exactly should we proceed?” Without this section, readers might encounter only experiences, practices, and case studies of corporate innovation and regional development in subsequent chapters, struggling to discern the underlying spiritual fabric and value orientation.
Salute to the Red Flag Canal. Salute to the generation of builders who constructed it. It is they who built a “spiritual canal” that transcends time and space, giving our present discussions on development and explorations of innovation deeper roots and a steadier foundation.
III. Hebi Culture: The Local Soil of the Red Flag Canal Spirit
As a major industrial city in Northern Henan Province, Hebi long relied on resource-based industries like coal and chemicals as its economic pillars. While accumulating a robust industrial foundation during industrialization, it also faced structural challenges such as resource depletion, mounting ecological pressures, and an overly narrow industrial structure. In the new era, industrial transformation and upgrading became an inevitable choice for Hebi to achieve high-quality development. The cultural and tourism industry, with its characteristics of low resource consumption, strong employment generation, and high integration potential, emerged as a crucial breakthrough point for Hebi’s industrial restructuring. Da Bi Mountain, the Pan Shitou Reservoir, and Yunmeng Mountain, these sites blend unique natural landscapes with profound historical and cultural significance. They serve as exemplary benchmarks in Hebi’s dual-drive strategy for cultural and tourism industry development, propelled by both cultural heritage and natural resources. This chapter analyzes Hebi’s cultural tourism sector from a macro perspective of industrial transformation, examining its resource endowment advantages, development pathways, transformative effects, and optimization directions. It provides empirical insights for resource-based cities seeking transformation through cultural tourism.
(1) Resource Endowment: The Foundation of Core Competitiveness
The success of industrial transformation hinges on accurately identifying and activating distinctive local resources. The core engines driving Hebi’s cultural tourism development—Dabishan Mountain, Yunmeng Mountain, and the ancient city—derive their power from unique resource endowments shaped by both natural topography and historical culture. This dual advantage of “natural texture + cultural texture” provides a solid foundation for deepening cultural tourism development. It is precisely within this landscape of intertwined mountains and rivers, where cultural traditions flow unbroken, that qualities like self-reliance, hard work, and solidarity have gradually taken root. These qualities provided the deep regional cultural foundation for the era’s spirit, epitomized by the Red Flag Canal spirit.
1. Natural Topography: A Spectacle at the Transition Zone Between the North China Plain and the Taihang Mountains
Located at the transition zone between the North China Plain and the Taihang Mountains, Hebi features the Dabi Mountains and Yunmeng Mountains—both foothills of the Taihang range—rising abruptly from the flat northern Henan plain to form a unique landscape of “isolated peaks piercing the clouds.” Dabishan Mountain spans 0.95 kilometers east-west and 1.75 kilometers north-south, covering approximately 1.66 square kilometers. Though its peak reaches only 135 meters above sea level—not exceptionally high or precipitous—its “hills rising from flat land” feature makes it strikingly prominent. Composed of Middle Cambrian limestone in three superimposed layers, the mountain reveals exposed bluestone in places. Millennia of geological evolution have sculpted distinctive rock textures and formations, offering natural materials for geological research and nature observation. Yunmeng Mountain, situated in Qixian County west of Hebi, spans 67 square kilometers. Its main peak rises to 577 meters above sea level, surrounded by a cluster of verdant peaks where mountains rise and clouds float. The area features diverse landscapes including forests, stalactites, waterfalls, and stone carvings, with alpine meadows visible from the summit.
In terms of climate and ecology, Hebi City experiences a warm temperate semi-humid monsoon climate with an average annual temperature of 13.7°C. Its distinct seasons each present unique scenery: spring brings verdant mountains where ancient Han and Tang dynasty cypresses sprout fresh buds; summer features lush green hills nourished by abundant rainfall; autumn offers pleasant coolness with vibrant foliage and falling blossoms; while winter blankets the landscape in snow, adorning ancient temples in a pristine white. This creates a year-round scenic appeal for tourism. The Dabi Mountain Scenic Area preserves 426 ancient Han and Tang dynasty cypress trees, which, together with limestone formations and mountain streams, form a stable ecosystem. This provides visitors with a refreshing environment and lays an ecological foundation for the sustainable development of the cultural tourism industry. Moreover, Dabi Mountain enjoys a prime location: it borders the Beijing-Guangzhou Railway and Beijing-Zhuhai Expressway to the west, neighbors the ancient course of the Yellow River to the south, and lies approximately 25 kilometers from Hebi city center. Situated at the hub of the radiation zones of Anyang, Puyang, Xinxiang, and Hebi, its convenient transportation offers inherent advantages for attracting visitors from surrounding areas.
As a transitional zone, Hebi is also traversed by the Qi River, a tributary of the Wei River. This natural resource enabled the construction of the Panshitou Reservoir in the Taihang Gorge and the upper reaches of the Qi River. The reservoir features extraordinary mountains and unique rock formations, with stunning landscapes where water and mountains vie for beauty. Steep cliffs rise along both banks upstream, forming deep, secluded gorges. Traveling 24 kilometers upstream connects to the renowned Taihang Grand Canyon in Linzhou, home to natural wonders like Jiguan Mountain, Shuangta Temple, and Tawan. Surrounded by the Taihang Mountains, the entire reservoir resembles a lake—crystal clear and rippling with emerald waves.
2. Historical and Cultural Heritage: A Multicultural Legacy Spanning Millennia
If the unique natural topography represents the “form” of Hebi’s cultural tourism industry, its profound historical and cultural heritage embodies its “spirit.”
Religious culture forms the core of Hebi’s cultural legacy. As a vital transportation artery connecting north and south, Hebi preserves numerous relics of Buddhism, Taoism, and Confucianism. Mount Dabi stands as a particularly significant site for religious and cultural activities. Mount Dabi ranks among China’s earliest historically documented sacred mountains. The Shangshu Yugong records, “Eastward past Luo Rui, reaching Mount Dabi,” confirming its status as a significant geographical landmark since the Xia Dynasty. Its title as one of the “Yugong Famous Mountains” has endured for millennia. From the Shang and Zhou dynasties through the Ming and Qing, Mount Dabi remained a vital center for cultural, religious, and military activities. Its most renowned feature is the cliff-side Buddha carved during the Northern Dynasties, standing 22.29 meters tall. This seated Maitreya statue is China’s earliest and largest northern cliff-side Buddha, famously described as “an eight-zhang Buddha flanked by a seven-zhang tower”—a unique world-class Buddhist architectural spectacle. Construction of this colossal Buddha began during the Taihe era of the Northern Wei dynasty. Later, Emperor Shi Le of the Later Zhao dynasty commissioned its carving to pacify the Yellow River, following the advice of the Western Region monk Fotu Cheng. After undergoing repairs across multiple dynasties, it remains solemn and majestic to this day. Beyond the cliff-side Buddha, the scenic area features Tang Dynasty Thousand Buddha Caves housing over 960 extant statues, alongside Daoist temples such as Lü Zu Cave, Hutian Daoist Temple, and Yu Wang Temple, forming a religious landscape where Buddhism and Daoism coexist. As of 2023, Mount Dabi hosts 10 national key cultural relics protection sites, 9 ancient architectural complexes of Taoist temples and Buddhist monasteries, and over 460 cliff inscriptions spanning historical periods from the Northern Wei Dynasty to the Ming and Qing Dynasties. These relics collectively form a “three-dimensional historical record.” Yunmeng Mountain features ancient Buddhist and Taoist temples including Lingshan Temple, Chaoyang Temple, Qingyanjue Grottoes, Qingliang Hermitage, Jade Emperor Hall, and Sanqing Hall.
Figure 4 Group Photo at Yunmeng Mountain
Beyond its religious heritage, Hebi boasts a rich legacy of historical and cultural traditions. During his northern campaign, Emperor Guangwu of the Eastern Han Dynasty constructed a blue altar atop Mount Dabi to worship heaven, earning it the name “Blue Altar Mountain.” During the Ming Dynasty, Wang Yangming (Wang Shouren) was commissioned to oversee the burial of Minister of War Wang Yue and lingered here, teaching disciples and leaving behind stone inscriptions such as “Poem on Mount Dabi” and “Rhapsody on Mount Dabi.” Later generations established the Yangming Academy based on these inscriptions. Throughout history, literati and scholars like Cao Pi and Wang Duo ascended the mountain to compose verses, leaving numerous cliff inscriptions and literary works. Confucian culture boasts an even longer history in Xun County. Zengzi, one of Confucius’s Ten Sages and praised by the Master as a “precious vessel,” is buried here. Later generations paid homage to him at the Li Gong Temple within Xun County’s ancient city. Remnants such as the Xingdao Academy, Zigong’s Hometown Stele, Duankia Pit, and Hanlin Mansion further showcase Hebi’s profound Confucian merchant culture. Yunmeng Mountain centers on military culture. The Ming Dynasty’s “Chronicles of Qixian” records: “Yunmeng Mountain is where Master Guigu resided as an immortal.” Legend holds that Guiguzi once lived in seclusion here, teaching his disciples. Major historical figures of the Warring States period—Su Qin, Zhang Yi, Sun Bin, Pang Juan, Mao Sui, and Li Mu—all studied under him here. Numerous inscriptions and stele on the rock walls and stone monuments near the Water Curtain Cave entrance bear tributes to Guiguzi from renowned figures of the Yuan, Ming, Qing dynasties, and modern times. These include the largest and most extensive cliff inscription in China, the “Guiguzi Military Treatise.” Since the 1990s, Hebi has hosted multiple academic conferences on Guiguzi, including the Guiguzi and School of Diplomacy Culture Symposium.
Moreover, Hebi boasts a rich folk culture, with its annual Lunar New Year Temple Fair lasting over a month. During its peak, the event attracts up to 200,000 daily visitors, establishing itself as a major folk cultural festival in northern Henan. The profound integration of natural landscapes and historical heritage grants Mount Dabi a distinct competitive edge over other scenic areas, providing irreplaceable resource support for the development of cultural tourism within Hebi’s industrial transformation. Meanwhile, within the ancient city of Junxian, the local government has systematically introduced multiple intangible cultural heritage projects—including the Lunar New Year Temple Fair—under the core principles of “preservation and inheritance, cultural-tourism integration, and revitalization through development.” Over 40 intangible cultural heritage shops have been established, hosting over 600 dynamic and static cultural performances annually. These initiatives engage 286 inheritors of national, provincial, municipal, and county-level cultural heritage, alongside 600 performers: fostering the living transmission of the ancient city’s intangible cultural heritage.
(2) Transformation Practices: Development Pathways and Innovative Explorations in Cultural Tourism
Guided by the strategy of transitioning from a resource-based city to a comprehensive city, Hebi has advanced systematic development of its cultural tourism industry through three pathways: cultural revitalization, ecological optimization, and business model innovation. This has transformed its “resource advantages” into “industrial strengths,” injecting robust momentum into Hebi’s industrial transformation. Throughout this process, the cultural tourism sector has also inherited and transformed the values of self-reliance and pioneering innovation inherent in the Red Flag Canal spirit.
1. Prioritizing Heritage Preservation to Drive Cultural Resource Revitalization
The sustainable development of cultural tourism fundamentally relies on effective heritage protection. Dabishan consistently adheres to the principle of “priority to protection, reasonable utilization.” Through technological empowerment and institutional innovation, it has achieved a win-win outcome in both heritage preservation and revitalization. In terms of cultural relics protection, the comprehensive conservation and restoration project for the Dabishan Cliff-side Buddha and stone carvings, launched in 2024, stands as a model of heritage preservation. Jointly implemented by the Junxian County Culture, Radio, Television, Tourism Bureau and the China Academy of Cultural Heritage, technicians employed specialized tools like vacuum cleaners, soft-bristle brushes, and low-temperature cold steam to remove nearly 200 kilograms of dust from the Buddha’s entire surface. Simultaneously, advanced equipment including infrared imaging, 3D laser scanning, and ground-penetrating radar conducted a comprehensive “health check” on the Buddha, establishing a digital archive. Ultrasonic crack detection alone established over 20,000 inspection points on the statue’s body, precisely identifying issues like hollow areas and water seepage to provide data-driven support for scientific restoration. The project also unexpectedly uncovered two Buddha niches on the cliff face behind the statue’s left shoulder, offering new evidence for dating its carving and embodying the principle of “research through preservation, preservation through research.” It has introduced a series of ancient building protection plans, advanced restoration efforts, established a “Liyang Culture” database, and continuously implemented dynamic restoration projects for the ancient city. For the well-preserved street layout within Junxian Ancient City, featuring dense clusters of structures like moats, ancient government offices, temples, and the Liyang Granary ruins, the local government adheres to a legal framework for safeguarding cultural heritage under the principle of “preserving cultural lineage and benefiting Liyang.”
Building upon this foundation of preservation, Hebi actively promotes the revitalization of cultural resources. At Dazhishan, the local government delves deeply into the essence of cultural IP to create distinctive cultural tourism events. For instance, it hosts the Sutra-Drying Cultural Festival by integrating the Buddhist heritage of the cliff-side Buddha. Leveraging folk traditions, it organizes the “Bishan Cup” Folk Culture Photography Competition and launches events like the Puppet Carnival and Traditional Chinese Costume Contest during the ancient temple fair in the first lunar month. During the 2023 holiday season, Dabi Mountain and the ancient city scenic area collectively welcomed 1.1279 million visitors, generating tourism revenue of 173 million yuan. Concurrently, the government advanced digital heritage preservation by creating 3D laser-scanned models of core artifacts like the Cliffside Buddha and Thousand Buddha Caves. Plans are underway to integrate these with the ancient city’s digital exhibition project, establishing virtual online tours to make immovable cultural relics “travel” and “come alive.” Simultaneously, Jun County seized opportunities to advance the transformation and upgrading of cultural tourism integration. It focused efforts on developing the Jun County Ancient City into a national-level nighttime cultural and tourism consumption hub. This included hosting intangible cultural heritage performances like the Liyang Folk Festival, ancient-style flash mobs, and Pangu dances, alongside immersive events such as the Liyang Good Voice competition and street light shows. This series of immersive cultural tourism activities has attracted over 500 branded enterprises and specialty shops, launched 135 nighttime cultural entertainment projects, and organized more than 100 nighttime cultural tourism events, creating over 4,500 jobs. In the first five months of 2023 alone, the city welcomed over 1.8 million visitors, generating a comprehensive nighttime tourism revenue of 65 million yuan. The ancient city also leverages traditional Junxian techniques to craft specialty cuisine, establishing signature food concept stores that draw visitors seeking local culinary experiences.
2. Supported by Ecological Optimization, Enhancing Tourism Experience Quality
Natural ecology serves as the foundation of the cultural tourism industry. Dabi Mountain has continuously improved the quality of its scenic area by focusing on ecological restoration and environmental remediation. Addressing issues such as exposed bluestone surfaces and degraded vegetation in certain areas, the scenic area implemented vegetation restoration projects. While preserving 426 ancient Han and Tang dynasty cypress trees, it replanted native tree species to create a multi-layered vegetation landscape, thereby improving the mountain’s ecological environment. Concurrently, infrastructure improvements have advanced the cultural landscape and public services within the Dabi Mountain (Fuchou Mountain) scenic area. A new visitor distribution center has been constructed, the scenic area’s transportation network optimized, and facilities such as eco-friendly parking lots and environmentally sustainable restrooms added to enhance visitor comfort.
Figure 5 TSDM Team Group Photo at Dabi Mountain
As a large (Type II) water conservancy hub primarily for flood control and water supply while also supporting irrigation and power generation, the Hebi government has conducted years of exploratory practices and continuous monitoring at Panshitou Reservoir. Utilizing the “Panlong No. 1” vessel-mounted water quality monitoring system, it automatically collects samples hourly, providing real-time updates on critical data such as dissolved oxygen concentration and pH levels. Concurrently, Panshitou Reservoir implements real-time monitoring, closed management, and stocking programs to ensure sustained water quality improvement. Moreover, the reservoir has significantly increased ecological investments and restoration efforts. Over 9,000 mu (approximately 600 hectares) of barren hills and slopes have been reforested, more than 500 mu (approximately 33 hectares) of ecological buffer zones established, and over 900 mu (approximately 60 hectares) of land subjected to soil and water conservation measures. These initiatives have enhanced water conservation, ecological restoration, and water self-purification capabilities. They have also curbed activities harmful to the ecosystem and water quality, such as illegal logging, unregulated farming and grazing, unauthorized mining, unauthorized construction, and illegal hunting. A fishing moratorium is enforced annually from April to June during the spawning season.
Extensive geological shifts have left the Taihang Mountains with sheer cliffs and an extremely fragile ecosystem. To address this, Qixian County undertook over a decade of reforestation efforts on barren hillsides. This has cultivated dense forests of pine, cypress, Chinese oak, poplar, maple, and other tree species, forming a distinctively layered Yunmeng Mountain forest ecosystem with a 71% forest coverage rate. In 2016, Qixian’s Yunmengshan Forest Park was designated as “Henan Yunmengshan National Forest Park,” deepening greening and conservation policies. In spring 2022, Qixian launched a three-year, 100,000-mu (6,667 hectares) afforestation project in mountainous areas, successively implementing a series of high-quality afforestation projects in challenging terrains such as Jinniuling, Chaoyangshan, Guibeiling, Dahannaoshan, and Yunmengshan. Stretching 20 kilometers from Yunmengshan’s southern county border to Duofeng Reservoir in the north, the project covers 100,000 mu of barren hills across 13 villages including Woyangwan, Qingyangkou, Shangcao, and Xiantangang.
To achieve integrated “mountain-water-city” development, Jun County coordinated planning for Dabi Mountain, Jun County Ancient City, and Fuchou Mountain, establishing a tourism framework of “Three Mountains, Two Rivers, and One Ancient City.” Through ecological corridor construction, the natural landscapes of Dabi Mountain were linked with the cultural landscapes of the ancient city, forming a tour route of “mountain climbing for scenic views—entering the city to explore antiquity—riverfront leisure,” thereby extending visitor dwell time. In 2023, Junxian Ancient City was selected as part of the second batch of National Nighttime Cultural and Tourism Consumption Agglomeration Zones. Daytime sightseeing on Dabi Mountain complements nighttime consumption in the ancient city, creating a full-time tourism consumption experience.
3. Breaking Through with Business Model Innovation to Cultivate New Momentum for the Cultural Tourism Industry
In response to the trend of cultural tourism consumption upgrading, Hebi has closely followed market developments, fostering diversified cultural tourism formats guided by “disruptive creativity, immersive experiences, and youth-oriented consumption.” In terms of business model innovation, the viral success of the “Gugu Laiyi” Cloud Restaurant on Mount Dabi is highly representative. Perched atop Dabi Mountain, the restaurant draws inspiration from Junxian’s traditional clay sculpture culture, specifically the “gugu bird.” Constructed with traditional materials like slate tiles and bluestone slabs, its interior features intangible cultural heritage works such as clay sculptures and paper-cutting art. Seamlessly blending with the natural landscape while showcasing cultural distinctiveness, it won the 2023 Dezeen Awards in the architecture category and has become a viral tourist hotspot. This fusion model—combining architectural artistry, intangible cultural heritage, and dining services—precisely aligns with the consumption preferences of the younger generation, infusing the scenic area with youthful vitality.
Meanwhile, Dabi Mountain is actively promoting cross-sector integration through “cultural tourism plus.” In the “Cultural Tourism + Educational Tours” sector, leveraging resources like the Yangming Academy and cliffside inscriptions, it has launched series such as “Little Intangible Cultural Heritage Heirs” and “Junxian Stories,” establishing a provincial-level educational tour camp. In the “Cultural Tourism + Commerce” sector, it has developed specialty dining districts around the scenic area featuring local delicacies like Liyangzi bread and community hotpot, while creating cultural and creative products such as clay figurines and stone rubbing prints. For “Cultural Tourism + Performing Arts,” the county transformed its Spring Festival-specific performances into regular shows, presenting immersive programs like ancient-style dances and intangible cultural heritage exhibitions at venues such as the Great Buddha Square and Yangming Academy. During the 2024 National Day holiday, over 300 cultural tourism events were held, effectively stimulating consumption. Furthermore, Jun County is advancing key projects like the Confucian Business Culture Park and the Liyang Granary Site preservation and exhibition as part of its drive to become a national 5A-level tourist attraction. Plans include integrating Dabi Mountain into a broader cultural tourism cluster to enhance industrial competitiveness.
Meanwhile, the ancient city of Junxian continues to introduce new platforms and products. In May 2025, leveraging the “Colorful Liyang City: Let’s Explore Together” themed event, it will organize and guide various scenic spots and cultural venues to launch new formats such as “tourism + performances,” “tourism + cultural creativity,” and “tourism + creative consumption.” Tourism + Creative Consumption“ formats. This initiative launched a round-the-clock cultural tourism model, further driving cultural revitalization and consumption upgrades to convert ‘traffic’ into ”retention.” Many visitors earned “Liyang City Silver Notes” by participating in interactive activities like the Jade Rabbit Dance Battle and retro games. These notes could then be used for cash-equivalent spending at venues including Shehuo Hotpot, West Gate Amusement Park, Gongqing Post Station, Yunxi Lane, Majia Courtyard, Sun-Dried Coffee, and Liyang Folk Market shops.
In Qixian County, the Cultural Relics and Tourism Bureau has adopted a “comprehensive tourism” approach to develop, construct, promote, and manage local resources. This has yielded multiple cultural theme parks: the Yunmeng Mountain Scenic Area centered on Warring States military culture, the Ancient Ling Mountain Scenic Area embodying the culture of Nüwa (the mythical ancestor of humanity), and the Chaoyang Temple Scenic Area highlighting Shang Dynasty heritage, all enriching visitor experiences.
(3) Transformation Effects: The Multidimensional Driving Role of Cultural Tourism in Hebi’s Development
The deep development of Hebi’s cultural tourism industry has not only transformed the city itself from a “famous cultural mountain,” “landscaped by mountains and waters,” and “historic city” into a “tourist destination,” but has also played a significant role in boosting employment, promoting industrial integration, and enhancing the city’s image. It has become both an ‘accelerator’ and a “stabilizer” for Hebi’s industrial transformation.
1. Dual Boost to Employment and Income, Enhancing Livelihoods
The cultural tourism industry possesses strong employment absorption capacity. The development of Dabi Mountain’s cultural tourism sector has provided Hebi with a large number of jobs, effectively alleviating employment pressure during the transformation of resource-based industries. The scenic area directly drives nearly 2,000 positions in roles such as tour guides, security, cleaning, and maintenance, with many employees transitioning from traditional industries like coal mining and chemical manufacturing. Simultaneously, the clustering effect of the cultural tourism sector has spurred growth in related industries like catering, accommodation, and retail. Unique lodging options such as Yinmo Hotel and Gongqingyi Homestay have emerged around Junxian Ancient City and Dabi Mountain, while specialty eateries like Liyangzi Steamed Buns and She Hotpot have seen substantial annual revenue growth, indirectly creating over 5,000 jobs. Data from 2023 indicates that Jun County’s cultural and tourism sector boosted per capita disposable income for urban and rural residents by 3.2 percentage points, becoming a vital pillar for enriching the people and strengthening the county.
2. Optimizing Industrial Structure and Driving Economic Transformation
The development of the cultural and tourism industry has propelled Hebi’s industrial structure from “heavy industrialization” toward “diversified synergy.” On one hand, as a core component of the tertiary sector, the cultural and tourism industry’s share of output value has increased annually. By 2024, its added value accounted for 12.5% of Jun County’s GDP, establishing it as one of the pillars of the county’s economy and effectively reducing Hebi’s reliance on resource-based industries like coal. On the other hand, the integration of cultural tourism with primary and secondary industries has spawned new industrial models. For instance, “cultural tourism + agriculture” has spurred the development of nearby picking gardens and eco-farms; “cultural tourism + manufacturing” has driven the rise of industries like cultural and creative product processing and tourism equipment manufacturing. This has formed a development pattern where “cultural tourism promotes integration, and integration drives transformation.” Furthermore, the coordinated development of Dabi Mountain, Junxian Ancient City, and Fuchou Mountain has attracted substantial cultural tourism investment. In 2024, Junxian County initiated, continued, or reserved 65 key cultural tourism projects with a total investment exceeding 5 billion yuan, injecting new momentum into Hebi’s economic growth. Finally, the water quality monitoring and ecological conservation demands of Panshitou Reservoir have compelled local governments, enterprises, and researchers to continuously learn, innovate, and apply cutting-edge technologies, driving local scientific and technological innovation, sustainable development, and a green economy.
3. Rebranding the City Image to Enhance Regional Competitiveness
During industrial transformation, rebranding the city image is crucial. As Hebi’s core cultural tourism IP, Dabishan Mountain’s brand identity as a “mountain celebrated in Yu Gong and a sacred site of Buddhism and Taoism” has effectively elevated Hebi’s visibility and reputation. Through new media campaigns, festival events, and international accolades, Dabi Mountain’s influence continues to expand. The international award for the “Gugu Laiyi” restaurant and media coverage of the cliffside Buddha restoration have transformed Hebi’s image from a “coal city” to a “cultural tourism destination.” Simultaneously, the growth of the cultural tourism industry has driven improvements in Hebi’s urban infrastructure and public services. Projects like the tourist distribution center and smart tourism system not only serve visitors but also benefit local residents, enhancing the city’s livability and appeal. In 2024, Jun County was designated as one of Henan Province’s first Cultural and Tourism Consumption Demonstration Counties. The “Jun County Ancient City-Dabishan” scenic area, where Dabishan is located, has become a cultural tourism landmark in northern Henan. Junxian Ancient City became the only county-level National Historical and Cultural City in Henan Province, while Panshitou Reservoir was designated as the largest water conservancy hub in northern Henan and one of the three major flood control systems in the middle reaches of the Wei River under the Haihe River Basin plan. These developments have propelled Hebi into the Beijing-Tianjin-Hebei tourism synergy circle, enhancing its regional competitiveness.
(4) Challenges and Pathways for Optimizing High-Quality Development of Dabi Mountain’s Cultural Tourism Industry
Despite significant achievements in industrial transformation through cultural tourism, Hebi faces new challenges amid evolving consumption patterns and intensifying regional competition: First, cultural excavation remains superficial, with some tourism products confined to “sightseeing” levels and insufficiently exploring core themes like Buddhist-Taoist culture and Wang Yangming’s School of Mind. Second, integration of business models needs improvement. Emerging formats like “cultural tourism + technology” and “cultural tourism + wellness” are in their infancy, with incomplete industrial chains. Third, regional coordination mechanisms are inadequate. Collaboration with surrounding attractions like Anyang’s Yin Ruins and Xinxiang’s Baligou Valley remains insufficient, transportation accessibility is low, and a scaled tourism cluster has yet to form. Fourth, there is a shortage of specialized talent in fields such as cultural relics preservation, cultural tourism planning, and smart tourism operations.
To address these challenges and align with Hebi’s overall industrial transformation goals, the cultural tourism sector must pursue high-quality development through the following measures:
- Deepen cultural exploration to create premium content. Dabi Mountain, Junxian Ancient City, and Yunmeng Mountain should strengthen collaborations with universities and research institutions to thoroughly investigate the historical origins of the cliff-side Buddha and the cultural value of the Yangming Academy. This will enable the launch of in-depth products like “Buddha Culture Study Tours” and “Yangming Mind School Experience Camps.” Establish a research base for Zigong and Confucian merchant culture in Hebi, cultivating local expertise in this field. Vigorously advance the construction of the Confucian Merchant Culture Tourism Park in Junxian Ancient City, elevating the Zigong cultural heritage of the ancient city into a nationally recognized brand for Zigong and Confucian merchant culture. Integrate intangible cultural heritage into scenic experiences by establishing clay sculpture and paper-cutting workshops at Yangming Academy, enabling visitors to participate in intangible cultural creation and enhance cultural affinity. Promote Guigu military culture at Yunmeng Mountain, weaving ancient Chinese military wisdom into natural hiking routes to enrich cultural tourism appeal.
- Promote diversified integration of business formats to extend industrial chains. Accelerate the fusion of “cultural tourism + technology” by leveraging digital models to create VR virtual study programs and develop online platforms like “Cloud Tour of Dabi Mountain” and “Cloud Tour of the Ancient City.” Advance “cultural tourism + wellness” development by utilizing mountain ecological resources to build forest wellness bases. Deepening the integration of “cultural tourism + commerce,” designing cultural and creative product series like “Dabishan Cultural IP” and “Zigong Character IP” to elevate offerings from “tourist goods” to “cultural products.” Promoting the establishment of a “workshop + research-based learning” three-dimensional inheritance model to foster the living transmission of intangible cultural heritage in the ancient city.
- Establish regional coordination mechanisms to form a cohesive development force. Seize the opportunity of creating a national 5A-level tourist attraction to promote the integrated development of Dabi Mountain with Junxian Ancient City, Fuchou Mountain, and the Liyang Granary Ruins, crafting premium “one-day tours” and “two-day tours.” Strengthen cooperation with surrounding cities by joining the North Henan Cultural Tourism Alliance to achieve shared visitor sources, co-branding, and interconnected routes, forming a scaled tourism cluster.
- Strengthen talent development to enhance intellectual support. Establish a “university-local government collaboration” talent cultivation mechanism by co-building cultural tourism training bases with institutions like Henan University and Zhengzhou University. Implement talent recruitment policies to attract professionals nationwide in fields such as cultural relics conservation and cultural tourism planning. Conduct training programs for local practitioners to elevate service quality and professional standards.
(5) Chapter Summary
In its transformation from a resource-based city to a model city for high-quality development, Hebi leveraged its dual endowments of natural and cultural resources. Through practices such as cultural revitalization, ecological optimization, and business model innovation, the city has built a culturally-driven tourism industry system with core competitiveness. This system has played an irreplaceable role in boosting employment, upgrading industries, and reshaping the city’s image, offering valuable experience for resource-based cities seeking cultural-tourism-driven transformation. At a deeper level, it is precisely the spirit of the times—rooted in the Taihang Mountains and embodied by the Red Flag Canal spirit—that has provided Hebi with the conviction and value guidance for its transformative development. This has equipped the city with both the material foundation and the spiritual confidence to thrive “through coal and renew through culture.”
Moving forward, Hebi’s cultural tourism sector must deepen its cultural substance, expand integrated business models, strengthen regional collaboration, and bolster talent development. This will facilitate a shift from “single-point breakthroughs” to “cluster-based development” and from “sightseeing tourism” to “immersive experiences.” With the deepening implementation of the cultural tourism and creative industries integration strategy, Hebi is poised to become a nationally renowned cultural tourism destination. This will continuously inject robust momentum into the city’s industrial transformation, writing a new chapter in the green transition and cultural renaissance of resource-based cities.
IV. Semiconductor and Aerospace Enterprises: Self-Reliance Amid “Bottleneck” Constraints
(I) The Transformation from “Coal City” to “Space City”
1. The Inland Echoes of New Quality Productivity
The year 2025 marks a pivotal juncture for China: it is both the final sprint of the 14th Five-Year Plan and the starting line for the 15th Five-Year Plan. New quality productivity is no longer merely a keyword in policy documents but is taking concrete form in factories, production lines, and constellations of projects.
Viewed within the global coordinate system, these developments are intertwined with profound shifts in the geopolitical landscape: the normalization of technological blockades and the sharply increased risk of “chokepoint” constraints on core components have made a “secure, autonomous, and controllable” hard technology industrial chain both a strategic bottom line for the nation and a practical imperative for local cities seeking new developmental coordinates.
Figure 6: Team visiting Loongson Technology’s corporate exhibition hall
It is against this backdrop that Hebi has arrived at its own “transition moment.” This resource-based city, once prosperous through coal, had long been constrained by a single-industry structure. During our research, local officials shared the latest statistics: coal’s contribution to added value has shrunk below 10%, while high-tech industries now account for over 50% of the economy. The city’s economic structure is undergoing a visible transformation. In this chapter, we turn our lens to the reshaped industrial fabric, exploring how the spirit of the Red Flag Canal is being rewritten through chips and rockets amid the pressing reality of critical bottlenecks.
2. Policy Synergy: Top-Level Design and Local Experimentation in Harmony
At the national level, commercial aerospace and information technology application innovation (ITAI) have been explicitly designated as key pillars of strategic emerging industries. The report of the 20th CPC National Congress emphasized “accelerating the development of a strong aerospace nation,” while the Central Economic Work Conference specifically named commercial aerospace as one of the new growth engines. The ITAI industry, meanwhile, shoulders the responsibility of building national cybersecurity defenses and serves as foundational infrastructure for Digital China. Within this framework, the National Development and Reform Commission (NDRC), the Ministry of Industry and Information Technology (MIIT), and other departments have successively introduced policy tools supporting commercial aerospace and IT innovation industries. These measures—ranging from satellite manufacturing qualifications and commercial launch regulations to roadmaps for domestic substitution of critical information infrastructure—gradually create institutional “windows of opportunity” for local implementation.
Hebi has seized this wave of policy opportunities. On one hand, through documents such as the “Hebi City 14th Five-Year Plan for Strategic Emerging Industries and Future Industries” and the “Three-Year Action Plan for Cultivating and Expanding Commercial Aerospace and Satellite Industry Chains,” it has clearly designated commercial aerospace and satellite industries as key areas for fostering new productive forces. On the other hand, it boldly pioneered comprehensive measures in administrative approvals and factor allocation—including commitment-based reforms, scenario-based access, and dedicated industrial funds—creating a testing ground for hard technology enterprises characterized by “fewer constraints and more patience.”
In the field of domestic IT innovation, Hebi signed a strategic cooperation agreement with Loongson Technology, leveraging government procurement to advance the “market-for-industry” strategy. By phasing in the replacement of domestic computers in government and education systems, the city has embedded Loongson’s independent CPU ecosystem into local daily operations, forming a closed-loop where “application-side demand drives industrial-side development.”
3. Visited Enterprises: Key “Anchor Points” Along the Industrial Chain
During this field research, we focused on visiting several landmark enterprises along the industrial chain. These companies serve as pivotal nodes in Hebi’s “Chip-Star-Rocket” synergy framework and, to a certain extent, reflect the broader landscape of China’s new wave of hard technology breakthroughs:
- Loongson Technology (Hebi) Co., Ltd.: Loongson’s first chip packaging and testing base in Hebi, housing the nation’s first fully domestically-equipped packaging and testing production line. This facility handles the packaging, testing, and shipment of chips like the Loongson 1, serving as the computational power and hardware foundation for the regional information technology innovation ecosystem.
- Henan Hangyu Rocket Co., Ltd. Final Assembly and Intelligent Manufacturing Base: Located within the Hebi Satellite Intelligent Manufacturing Industrial Park, this 20,000 square-meter facility is designed for an annual production capacity of 20 medium-sized liquid-fueled carrier rockets. It marks Henan’s breakthrough from zero to one in commercial rocket final assembly and testing.
- Henan Tianzhang Satellite Technology Co., Ltd.: Focusing on satellite manufacturing, the company holds a National Development and Reform Commission-approved qualification for producing 100 satellites annually. It currently possesses the capacity to manufacture 20 commercial satellites weighing 500 kilograms and 10 weighing 1500 kilograms per year, serving as a pivotal pivot for Hebi’s transition from “using satellites” to “building satellites.”
- Aerospace Hongtu Central China Headquarters & Nuwa Constellation Operations Center: As a leading domestic commercial remote sensing satellite enterprise, Aerospace Hongtu implemented its Nuwa Constellation program in Hebi. By the end of 2024, it had launched 12 X-band radar remote sensing satellites, establishing an operational constellation capable of all-weather, round-the-clock service.
Among these enterprises, vertical chains encompass chip computing power, satellite manufacturing, and rocket launch services, while horizontal elements intertwine talent, capital, and application scenarios. A new landscape is emerging where an inland city “taps into space for growth.”
(2) Strategic Coupling of “Chip–Satellite–Rocket”: From Physical Aggregation to Mechanism Synergy
Hebi’s approach goes beyond merely clustering chip factories, satellite assembly plants, and rocket workshops on the same site. It consciously builds a strategic coupling relationship “from computing power to infrastructure, from workshops to constellations.” The research team identifies three primary dimensions of this coupling.
1. Technical Logic: From “Brain-Body Synergy” to Autonomous and Controllable Systems Engineering
Within the industrial chain framework, Loongson chips can be viewed as the “industrial brain,” while rockets and satellites constitute the “industrial body.” The former provides control logic and computational power support, while the latter performs the physical functions of entering space and sensing the world. LoongArch®, the instruction set architecture developed by Loongson Technology, features fully independent design from top-level planning to instruction encoding. It has gained formal support from international open-source communities like GNU, marking a crucial step toward achieving foundational autonomy in China’s information systems. Building on this foundation, Loongson has developed comprehensive IT innovation solutions tailored for key sectors including government affairs, finance, energy, and education. These solutions have been deployed at scale across multiple regions, notably in Hebi’s education and government systems.
From a security perspective, commercial spaceflight is a highly sensitive domain. If control chips for rockets, satellites, and ground tracking systems remain dependent on Wintel or ARM architectures, system security could be compromised under technological embargoes or export controls. Loongson’s accumulated expertise in radiation-hardened and wide-temperature-range technologies for industrial control and cybersecurity provides a practical technical pathway for future domestic substitution in satellite computing and satellite/rocket telemetry applications.
Of course, it must be acknowledged that the Loongson ecosystem still lags behind international mainstream systems in terms of performance and software diversity. To truly achieve “Loongson in space” and “Loongson on rockets,” it will require prolonged refinement in areas such as real-time operating systems, fault-tolerant design, and rigorous space environment testing. This precisely illustrates why Hebi has placed chip development and aerospace within the same industrial park—a forward-looking institutional investment. By locating R&D, testing, and application within visible proximity, it shortens the technical feedback cycle from “requirement identification → solution iteration → prototype validation.”
2. Spatial Layout: Where “Upstairs and Downstairs Are Upstream and Downstream”
Upon entering Hebi Satellite Intelligent Manufacturing Industrial Park, the phrase “Upstairs and downstairs are upstream and downstream; the industrial park is the industrial chain” is not an abstract slogan but a tangible daily reality.
On one hand, core enterprises like Aerospace Hongtu, Tianzhang Satellite, Aerospace Yuxing, Hangyu Rocket, and Loongson Technology are concentrated within the Sci-Tech Innovation City and Satellite Intelligent Manufacturing Industrial Park. Together, they form a complete chain spanning satellite operations, data processing, whole-satellite manufacturing, rocket development, and integrated testing, transportation, and control. On the other hand, the park itself brings together resources that were previously scattered across different cities or even provinces. This is achieved through shared testing platforms, joint R&D centers, and collaborative laboratories, all housed within the same building. For instance, the real-time processing of in-orbit data for Aerospace Hongtu’s “Nüwa Constellation” requires high-performance computing and algorithm platforms. Within the park, Loongson ecosystem companies can provide a complete solution, from domestically produced servers and operating systems to security products. After final assembly, some Tian Zhang satellites undergo launch compatibility testing directly with Huayou Rockets nearby. The Aerospace Yuxing Test, Operation, and Control Center processes orbital and attitude data for hundreds of satellites daily, necessitating frequent interaction with chip, server, and security system suppliers.
Physical clustering delivers more than just reduced logistics costs—it fosters an “ecological proximity”: technical challenges can be discussed around a table, supply chain risks can find alternative solutions within the park, and the friction costs of talent mobility between enterprises are significantly lowered.
3. Capital Logic: From “State Capital Backstop” to “Market-Oriented Operations”
Semiconductor and aerospace are quintessential “high-investment, long-cycle, high-risk” industries. Relying solely on short-term profit-seeking social capital makes it difficult to overcome the early “valley of death.” Hebi adopts a hybrid approach of “state capital leading investment + market-oriented operations”: On one hand, municipal state-owned capital becomes a major investor in leading enterprises or park platform companies through industrial funds and equity investments, providing “patient capital” for projects like rocket assembly bases and satellite smart production lines that often require billions of yuan. On the other hand, it preserves the flexibility of private-sector mechanisms within corporate governance. By adopting flat organizational structures and project-based systems for compensation incentives, R&D decision-making, and supply chain management, it avoids the traditional state-owned enterprise pitfalls of excessive layers and slow response times.
Notably, Hebi has established a “1+N” fund matrix comprising a ¥5 billion aerospace master fund supplemented by multiple satellite and space-specific funds. This matrix targets critical sectors like satellite manufacturing, rocket development, launch operations, and data applications, using a “capital chain” to hedge against uncertainties in the industrial chain.
Based on field research, this mechanism is not flawless but effectively addresses two key challenges: First, enterprises no longer need to obsess over short-term profitability during their decade-long R&D cycles. Second, local governments’ industrial policies have evolved beyond superficial incentives like “subsidies and rent reductions,” transforming into genuine “long-term partners” through shared capital risk-bearing.
(3) Corporate Profiles: From “Crafting a Single Chip” to “Launching a Constellation of Satellites”
1. Loongson Technology: Breaking Through and Pioneering Innovation Behind a Fully Domestic Packaging and Testing Line
Inside the cleanroom of Loongson Technology’s Hebi packaging facility, we witness a packaging and testing line composed almost entirely of domestically produced equipment: from wafer storage, die bonding, curing, and plasma cleaning to wire bonding, plastic encapsulation, testing, and marking—every critical process is executed by domestic machinery. This line marks Loongson’s first nationwide chip packaging project and is seen as a crucial step toward achieving self-reliance in China’s back-end chip manufacturing. Phase One has already achieved packaging and testing capabilities for the Loongson 1 series chips, with plans to gradually expand to supporting chips like power management and clock controllers. The target annual capacity is approximately 30 million wafers. In other words, the packaging and testing processes that previously required cross-provincial or even cross-border logistics can now be completed within Hebi, achieving a “local closed-loop.”
More importantly, this production line is not isolated but integrated with the replacement of foreign-made IT products in education, government, and other sectors. According to official Loongson data, by the end of 2023, Loongson solutions had been deployed in multiple regions across China.
More importantly, this production line does not operate in isolation but is integrated with IT innovation replacement initiatives across education, government, and other sectors. According to official Loongson data, by the end of 2023, Loongson solutions had completed the replacement of over 10,000 educational terminals nationwide, with Hebi being one of the earliest cities to implement a comprehensive replacement. For Loongson, Hebi serves as both a “production capacity release site” and an “ecosystem testing ground.”
From a longer-term perspective, Loongson’s value extends beyond merely “producing a domestic chip.” It lies in rebuilding a complete software and hardware ecosystem starting from the LoongArch instruction set—meaning it must not only function in corporate workshops but also operate reliably and sustainably in the most everyday settings like school computer labs, hospital service counters, and financial branches.
2. Aerospace Rockets: Industrial Breakthrough from “Vertical Assembly” to “Horizontal Final Assembly”
Unlike the precision and quiet of chip fabrication, the Aerospace Rocket Final Assembly and Intelligent Manufacturing Base resembles an enlarged “space workshop.” Media reports indicate the facility spans approximately 20,000 square meters, equipped with China’s advanced rocket assembly platforms and high-precision testing equipment. Designed for an annual output of 20 medium-lift liquid-fueled rockets, its projected annual output value is expected to exceed 3 billion yuan.
Aerospace Rockets selected the Houyi-1 (HY-1) medium-lift liquid-fueled launch vehicle as its inaugural development model, targeting 6-ton payload capacity for sun-synchronous orbit launches—precisely addressing the urgent demand for medium-to-high orbital transport capacity required by large-scale satellite constellations like the Nüwa Constellation.
Figure 7: Tian Zhang Satellite Corporate Exhibition Hall
Technologically, Hangyu Rockets avoids replicating the traditional “three verticals” model (vertical assembly, vertical testing, vertical transport). Instead, it adopts production organization methods better suited to commercial spaceflight: enhancing digitalization and modularization in final assembly to minimize cycle times from sub-assembly to complete rocket. This reduces reliance on ultra-tall facilities and large hoisting equipment, thereby cutting overall manufacturing costs.
Currently, China’s commercial rocket launch costs remain in the range of tens of thousands of RMB per kilogram, still significantly higher than international leaders like SpaceX. Hangyu Rockets aims to further lower its cost curve through simulation-driven design, supply chain localization, and production cycle optimization, carving out its niche between the market contradictions of “satellites without rockets” and “rockets that are too expensive.”
This path is far from easy. On one hand, most domestic commercial rocket enterprises are still playing catch-up in critical technologies like reusability and engine lifespan management. On the other, launch services heavily depend on the pace of downstream constellation deployment—any adjustments to satellite batch launch schedules directly impact rocket production capacity utilization. For Hangyu Rockets, striking a balance between “building production lines fast enough” and “securing stable orders” will be an unavoidable challenge in the coming years.
3. Tianzhang Satellite and the “Nüwa Constellation”: From “Star Factory” to “Data Factory”
If Loongson and Hangyu represent the “computing power foundation” and “launch channel” respectively, then Tianzhang Satellite and Aerospace Hongtu more vividly embody the industrial logic of the “constellation era.”
The Tianzhang Satellite Intelligent Manufacturing Base, located in Hebi Satellite Intelligent Manufacturing Industrial Park, spans approximately 13,000 square meters. It is equipped with comprehensive satellite assembly, environmental testing, and integrated testing systems, capable of providing end-to-end services—from design and simulation to testing and final assembly—for satellites in the 500-kg and 1,500-kg classes. Upon full production capacity, the facility can manufacture 30 satellites annually and holds a National Development and Reform Commission-approved qualification for producing 100 satellites per year—making it the first enterprise in the province to obtain this certification.
This signifies that missions previously requiring “satellite manufacturing and final assembly elsewhere” can now be fully completed locally in Hebi. The Nüwa Constellation project, a collaboration between Tianzhang and Aerospace Hongtu, plans to deploy 114 commercial radar remote sensing satellites. Currently, 12 satellites are operational in orbit, forming one of China’s largest operational radar remote sensing constellations with all-weather, round-the-clock Earth observation capabilities.
The Nüwa Constellation is not merely about launching satellites for the sake of launching. Leveraging self-developed platforms like PIE-Engine, Aerospace Hongtu extensively applies remote sensing data to scenarios such as flood control and disaster mitigation, landslide monitoring, forest fire prevention, and urban precision management. In recent years alone, it has generated over 500,000 standard image datasets, serving clients nationwide.
In this sense, Hebi is building a complete “satellite development-launch-management-application” chain: Tianzhang is responsible for building the satellites, Hangyu for launching them into space, companies like Aerospace Yuxing for “keeping an eye on the satellites in orbit,” while Aerospace Hongtu transforms this “starlight” into tangible benefits for daily governance and industrial upgrading through data products and industry solutions.
(4) Revisiting the Spirit of the Red Flag Canal Amidst “Throat-Gripping” Pressures
As demonstrated in the preceding chapters, the core of the Red Flag Canal spirit can be summarized as “self-reliance, arduous pioneering, unity and cooperation, and selfless dedication.” When applied to today’s semiconductor and aerospace industries, self-reliance resonates most profoundly.
First, “self-reliance” in today’s context manifests as full-chain autonomy and control—from instruction sets and operating systems to packaging and testing equipment. Loongson’s commitment to LoongArch, a path “starting from scratch,” may seem circuitous and slow in the short term. Yet it reserves a foundational route for national cybersecurity, free from patent blockades. What Hebi offers Loongson is a real-world scenario daring to deploy “domestic solutions” at scale. This mutual achievement itself embodies the contemporary spirit of the Red Flag Canal’s motto: “We handle our own affairs.” From the research team’s subjective perspective, the Hebi model is neither a simplistic “policy-driven industrial park” nor a single-point “star project,” but rather a strategic resolve to persistently invest in high-risk domains. It offers no guarantees of success, but it ensures this city won’t be easily sidelined in the next wave of technological competition.
From the research team’s subjective perspective, the Hebi model is neither a simplistic “policy-driven industrial park” nor a single “star project.” Rather, it embodies strategic resolve to persistently invest in high-risk domains—it offers no guarantees of success, but it ensures this city won’t be easily sidelined in the next wave of technological competition.
The “chip” fire has already spread across Hebi, and “stars and rockets” are now soaring from here toward the farthest reaches of the sky. For a small city once dictated by coal cycles, this may be the most fitting contemporary interpretation of the Hongqi Canal spirit: At this new historical juncture, we must continue to learn how to “grow our own strength where others choke us,” letting the canal waters flow from the foot of the Taihang Mountains toward the stars and the sea.
V. Automotive Electronics Enterprises: Rebuilding Synergy in the Global Supply Chain
(1) Current Development Status of Hebi’s Automotive Electronics and Electrical Appliances Industry
1. Overall Industrial Layout
Hebi City aims to build, extend, supplement, and strengthen industrial chains. Led by flagship enterprises and guided by market mechanisms, the city integrates its automotive electronics and electrical equipment industry. It actively guides enterprises toward transformation in new energy and intelligent connectivity sectors, continuously expanding upstream and downstream capabilities as well as cross-sector synergies. Efforts focus on enlarging industrial scale, lengthening industrial chains, and optimizing supporting systems—driving the sector toward mid-to-high-end segments and critical links within industrial and value chains. This strategic approach—proactively ascending upstream and breaking through to high-end segments in critical areas—echoes the spirit of the Red Flag Canal, embodying the resolve to tackle difficulties head-on and forge paths through perilous terrain.
During the Third Front Construction period, major enterprises producing military and civilian capacitors in China’s electronics industry relocated to Hebi as part of national deployment. Subsequently, over 500 industrial enterprises were established in sectors including machinery, metallurgy, building materials, chemicals, and textiles. At that time, Hebi became the largest manufacturing base for capacitors and resistors in northern China. This laid a solid industrial foundation for Hebi’s electronics and electrical appliance sector, while also fostering a local tradition of “building industrial capabilities through self-reliance.” This tradition provided fertile ground for adapting the spirit of the Red Flag Canal to emerging industries.
In recent years, leveraging its resource endowments and industrial base, Hebi has fostered a diversified, clustered, and standardized development pattern for its automotive electronics industry. It has evolved into one of Henan Province’s two major automotive electronics hubs and China’s largest automotive wiring harness production base. Against the backdrop of China’s booming new energy vehicle sector, Hebi has aligned with market trends, increased R&D investment, and promptly responded to product demands from new energy vehicle manufacturers. By August 2024, new energy vehicle electronics and electrical products accounted for over 40% of Hebi’s total output.
To advance the industrial transformation and upgrading of resource-based cities, Hebi focuses on enhancing production efficiency and innovation in automotive electronics while fostering emerging industrial clusters. Building on this foundation, the city is committed to refining its regional innovation system, establishing regional science and technology innovation centers and industrial innovation hubs, and continuously improving its capacity for national and international scientific cooperation.
2. Case Study: From “Hebi Manufacturing” to “Hebi Smart Manufacturing”
Leading enterprises such as Tianhai Group, Haichang Intelligent, and Hangsheng are accelerating technological R&D and industrial integration to establish Hebi’s automotive electronics intelligent manufacturing cluster.
First, Tianhai Group exemplifies the intelligent transformation of traditional products. Evolving from a small street-level workshop into a global enterprise with 23 branches and subsidiaries worldwide, the company commands over 20% of China’s automotive wiring harness and electronic connector market share. This translates to one in every five vehicles nationwide featuring “Hebi-made” components. Seizing industry opportunities, Tianhai Group launched innovative products in 2024 including high-voltage, high-current connectors and next-generation fast-charging sockets. This propelled its new energy business share past 60%, achieving annual revenue of 14.5 billion yuan—a 12.4% year-on-year increase. Its revenue growth outpaced the industry average by 8 percentage points, cementing its role as a key partner for leading new energy vehicle manufacturers like BYD and NIO. In 2025, ten major standards led or co-developed by the company were successively released, covering critical areas such as high-voltage connector testing and in-vehicle Ethernet communication protocols, establishing technical benchmarks for the industry.
Figure 8 Touring Haichang Intelligent Workshop
Additionally, Haichang Intelligent exemplifies smart manufacturing equipment. Focusing on its own intelligent development and actively pursuing digital transformation, the company significantly increased R&D investment during the 14th Five-Year Plan period. Production efficiency rose from 0.28 yuan per worker per day to 0.55 yuan per worker per day—a 96.43% improvement—while product defect rates decreased by 34.81%. and shortened product upgrade cycles by 33.33%, effectively driving sustainable corporate development. Notably, the company has become China’s largest automotive wiring harness intelligent equipment service provider and the world’s largest precision crimping die manufacturer, with eight of the top ten global automotive wiring harness companies as its clients.
Additionally, Hebi Hangsheng Automotive Electronics Technology Co., Ltd., a wholly-owned subsidiary of Hangsheng Group headquartered in Shenzhen, also demonstrates high levels of intelligent manufacturing. The Hebi subsidiary’s primary products span smart cockpits, intelligent connectivity, autonomous driving, and new energy equipment. It has not only deepened its presence in the domestic market but also aggressively entered international markets including North America, South Asia, the Middle East, Russia, and Japan, achieving rapid growth in export revenue.
(2) Hebi’s Automotive Electronics Industry Drives Urban Resource Transformation and Regional Innovation System Development
We observe that Hebi’s automotive electronics industry is leveraging its traditional industrial foundation to pursue high-end development, intelligent transformation, and green growth. It propels urban resource transformation and regional innovation system development through the following three dimensions:
1. Aligning with the “New Four Modernizations” Trend to Accelerate Industrial Upgrading and Digital Transformation
In recent years, the automotive industry has clearly exhibited the characteristics of the “New Four Modernizations” trend—electrification, intelligence, connectivity, and sharing—driving comprehensive industrial transformation. Facing the rapid growth in new energy vehicle sales and the continuous development of smart vehicles, Hebi’s automotive electronics and electrical equipment enterprises have expanded cooperation with new forces and emerging companies beyond their traditional client base. Leveraging existing industrial foundations, they are accelerating the upgrade of their product systems toward new energy and intelligence. By proactively adjusting their technological roadmaps and industrial focus, Hebi has pioneered systematic development in key areas such as intelligent driving, smart cockpits, and new energy control electronics. Take Tianhai Group as an example: since 2015, the company has established partnerships with leading domestic new energy vehicle manufacturers including NIO, Li Auto, XPeng, and BYD, achieving forward-looking strategic positioning. In recent years, Tianhai has continuously increased R&D investment, achieving breakthroughs in high-speed, high-voltage, and lightweight technologies. This has enabled the construction of a comprehensive product portfolio spanning connectivity systems, transmission systems, intelligent control, and low-carbon smart mobility. Currently, its Intelligent Connected Vehicle Transmission System and Key Automotive Electronics Project (Tianhai Phase III) is accelerating development, further enhancing the company’s strategic position in future industry competition.
Building upon industrial upgrades, Hebi’s automotive electronics enterprises are simultaneously accelerating their digital transformation. Through digital and intelligent empowerment, they continuously enhance R&D, production, and management capabilities. Companies are deepening digital applications across R&D design, manufacturing, operations management, sales services, and warehousing logistics, leveraging industrial digitization to improve the quality and efficiency of existing economic assets and upgrade industrial capabilities. Take Hebi Hangsheng Automotive Electronics Technology Co., Ltd. as an example. The company implemented the Alibaba Cloud Desktop Platform project, integrating technical R&D, process planning, and production manufacturing. This effectively resolved bottlenecks in intelligent production and data-driven connectivity, significantly enhancing the enterprise’s digital capabilities. In 2024, the company was successfully selected as a “Henan Province Digital Pioneer Enterprise and SME Digital Transformation Benchmark.”
Overall, Hebi’s automotive electronics industry has leveraged its traditional industrial foundation to establish a new industrial transformation and upgrading system driven by leading enterprises and supported by small and medium-sized businesses. Through product system upgrades and digital-intelligent empowerment, it has provided robust support for the city’s transition from a traditional resource-based economy to a technology-driven economy.
2. Leveraging Industrial Clusters to Strengthen Innovation Foundations and Enhance Standard-Setting Influence
Hebi has built an automotive electronics industrial cluster centered on Tianhai Group as the leader, with Haichang Intelligent and Hangsheng Electronics serving as key players. Under the guidance of government macro-planning and Tianhai Group’s leadership role, upstream and downstream enterprises, as well as those across different sectors and tiers, have achieved deep integration. Specialized, refined, distinctive, and innovative enterprises like Hengtong Electric, Mingtai Electric, and Hangrui Electronics have accelerated their growth, while quality benchmark enterprises such as Haichang Intelligent, Hangsheng Electronics, and Yuxiang Mould have further expanded. Currently, the cluster has cultivated one enterprise with annual revenue exceeding 10 billion yuan and two enterprises surpassing 1 billion yuan. Its product portfolio spans automotive connectors, wiring harnesses, in-vehicle intelligent connectivity systems, communication vehicles, and communication equipment, achieving serialized, scaled, and standardized development. The cluster has been recognized as a Henan Provincial Characteristic Industrial Cluster for SMEs, contributing over 75% of the total output value from enterprises above designated size in Hebi Economic and Technological Development Zone.
As the industrial cluster continues to expand, its innovation-driven advantages become increasingly prominent. The high concentration of leading and backbone enterprises in both spatial layout and industrial chains has enhanced efficiency in technological R&D, knowledge exchange, and process optimization, driving continuous breakthroughs in key technologies. Simultaneously, under government guidance, enterprises have collaborated with universities and research institutes to establish joint R&D platforms, gradually forming a regional innovation network with significant spillover effects that provides a steady stream of technological momentum for industrial development. For instance, the Tianhai Industrial Research Institute focuses on areas such as new automotive electronic/electrical architectures, in-vehicle Ethernet and domain control technologies, wireless communication technologies, and new high-voltage connection and transmission technologies. It has established a joint laboratory with SAIC and collaborates on cross-disciplinary research projects with universities and research institutes including Xidian University, CETC 22nd Research Institute, and Beijing University of Posts and Telecommunications. The institute has achieved parity or even leadership in certain specialized fields. Moreover, the clustering effect of leading enterprises has attracted a large number of high-caliber R&D talents and technical professionals, gradually establishing the region as a hub for automotive electronics expertise. This has laid a solid foundation for refining process standards, enhancing quality systems, and deepening technological innovation.
Bolstered by both innovation resources and talent advantages, Hebi enterprises have progressively gained the capability to participate in and even lead industry standard-setting. From January to August 2025, Henan Tianhai Electric Co., Ltd., a core subsidiary of Tianhai Group, successfully chaired or contributed to the development of 10 key standards—including one national standard and one group standard—leveraging its deep technical expertise and industry insights. This effort has injected “Tianhai strength” into China’s automotive standardization efforts. By August 2025, Tianhai Group had cumulatively led or participated in developing over 40 standards, covering core areas such as automotive connection systems, electrical and electronic components, and intelligent connectivity technologies. This has made significant contributions to establishing a scientific, standardized, and comprehensive technical standard system for China’s automotive industry.
3. Building on the foundation of emerging automotive electronics and electrical systems, continuously strengthening international technological innovation capabilities
The rapid development of the emerging automotive electronics and electrical systems industry has significantly enhanced Hebi enterprises’ competitiveness on the global stage. Hebi’s automotive electronics and electrical systems companies have fostered a highly open technological ecosystem, continuously improving product sophistication and system compatibility while accelerating integration into global supply chains. With continuous technological advancement, Hebi enterprises have achieved internationally leading standards in product reliability, process consistency, and supply chain assurance capabilities, laying a solid foundation for further overseas market expansion. Taking Tianhai Group as an example, its products are directly supplied to internationally renowned brands such as General Motors, Ford, and Chrysler. The company has established long-term stable business relationships with production bases of the world’s top eight OEMs (Original Equipment Manufacturers) and has repeatedly passed audits and technical evaluations by leading international brands. Haichang Intelligent has evolved into an international enterprise integrating R&D, production, sales, and service, with operations spanning 52 countries and regions across North America, Europe, Southeast Asia, and beyond. This international recognition not only solidifies Hebi’s automotive electronics enterprises’ competitive position within the global supply chain but also lays the groundwork for building higher-level technological innovation capabilities in Hebi. Moving forward, Hebi’s automotive electronics industry will deepen collaborations with global partners, keep pace with the new wave of technological revolution and industrial transformation, drive product upgrades through technological iteration, and jointly advance electrification and intelligent transformation. This will provide more “Hebi solutions” for the high-quality development of the global automotive industry.
(3) Challenges Facing Hebi’s Automotive Electronics Industry and Future Development Directions
Currently, the global automotive industry is undergoing profound transformation from simple mechanical manufacturing to highly integrated electronic and intelligent systems. Although Hebi has cultivated industry leaders such as Tianhai Group and Haichang Intelligent and formed a hundred-billion-yuan industrial cluster, its existing industrial model still requires deep-seated adjustments and upgrades in the face of multiple pressures: shortened vehicle R&D cycles, stringent safety compliance requirements, and a complex international trade environment. Moving forward, Hebi’s automotive electronics and electrical systems industry should prioritize breakthroughs in three key areas: collaborative R&D, standardization, and global expansion. This represents both a technological imperative and a practical challenge: how to continue upholding the spirit of the Red Flag Canal and successfully navigate the transformation of a resource-based city at this new historical juncture.
1. Establishing a Deeply Integrated, Full-Process Collaborative System
As the pace of automotive innovation accelerates significantly, the R&D cycle for new vehicle models has drastically shortened. Under traditional supply chain models, automotive electronics and electrical equipment companies often passively manufacture products based on blueprints provided by automakers. This reactive approach can no longer meet the demands of today’s rapidly changing market. Without change, these companies risk marginalization and becoming mere contract manufacturers. Therefore, transforming collaboration methods and increasing R&D involvement have become urgent priorities.
To address this challenge, the R&D process must be advanced from reactive order fulfillment to synchronous development. Automotive electronics and electrical companies can no longer wait for explicit directives from automakers; they must proactively engage during the conceptual design phase of vehicle models. Companies should establish R&D systems capable of synchronous interaction with automakers, advancing product compatibility verification through joint technical discussions. In this regard, Tianhai Group offers a reference model. Leveraging its industrial research institute resources, the company has actively established joint laboratories with automakers like SAIC Motor and collaborated with research institutions such as Xi’an University of Electronic Science and Technology and CETC 22nd Research Institute on key R&D projects.
Moving forward, Hebi-based enterprises should deepen such collaborations by sharing user demand data and simulation test results with clients through digital tools. This deep integration enables companies to embed their technical solutions at the earliest stages of vehicle design, significantly reducing product development response times. This transformation shifts their role from mere “suppliers” to indispensable “R&D partners.”
Second, internal organizational structures must be optimized to build agile teams capable of rapid iteration. To align with automakers’ efficient rhythms, automotive electronics companies must also transform their internal management processes. Traditional hierarchical structures often involve lengthy approvals, struggling to meet the rapid demands for software and product updates in the intelligent era. Companies are advised to break down traditional departmental silos by establishing independent business units dedicated to intelligent connectivity or new energy ventures. Granting these units greater autonomy in strategic decision-making, personnel recruitment, and resource allocation reduces internal approval bottlenecks and enhances decision-making efficiency. In this regard, Hebi Hangsheng successfully broke down data barriers between R&D and manufacturing by implementing the Alibaba Cloud Desktop Platform project, enabling real-time information flow. This digital transformation experience is worth replicating, as it helps companies build more flexible and agile innovation teams to respond swiftly to market changes.
Overall, integrating regional resources creates a group-army advantage across the industrial chain. Going it alone is insufficient to withstand fierce market competition. Hebi should fully leverage its existing Automotive Electronics and Electrical Appliances Industry Alliance, comprising 56 enterprises, to build a cohesive industrial ecosystem. By strengthening collaboration among local companies—such as Haichang Intelligent providing high-end production equipment while Tianhai Group manufactures wiring harnesses and connectors—the alliance fosters internal resource circulation and complementary strengths. This collaborative development model not only reduces production costs but also enables the alliance to pursue more development opportunities in key industry sectors by offering integrated solutions.
2. Securing Industry Standard-Setting Authority to Strengthen Competitive Barriers
As automotive intelligence advances, the quantity and complexity of in-vehicle software systems are growing exponentially, significantly increasing cybersecurity and operational safety risks. National regulations for intelligent connected vehicles are becoming increasingly stringent, encompassing full lifecycle management from market access and road testing to recalls. Against this backdrop, merely meeting existing national standards is insufficient to establish competitive advantage. Enterprises must possess the capability to define industry rules, building technological moats by setting higher standards.
Leading companies set standards. In fierce market competition, whoever controls standard-setting holds the initiative in technological development. Tianhai Group has taken the lead in this area, having spearheaded or participated in over 40 standards to date. In 2025 alone, it released 10 major standards covering critical domains such as high-voltage connector testing and in-vehicle Ethernet communication protocols. Moving forward, Hebi enterprises should leverage this first-mover advantage by focusing on cutting-edge domains like data transmission security and next-generation electronic architectures. Converting proprietary technologies into industry-wide standards not only amplifies brand influence but also raises the sector’s entry barriers, thereby solidifying market leadership.
Faced with increasingly complex electronic systems, enterprises must establish comprehensive security management systems spanning R&D design, manufacturing, and after-sales service. At the management level, establishing a high-level security department is recommended to coordinate the balance between product innovation and compliance risks. Technologically, Haichang Intelligent should leverage its position as a global leader in precision crimping die manufacturing. By integrating AI recognition technology into production equipment, real-time monitoring and risk alerts can be implemented at every stage of manufacturing. This ensures each delivered wire harness and connector achieves exceptional reliability—not merely to meet compliance standards, but to provide customers with safety assurance eliminating the need for re-inspection. This shift transforms the company from a pure product seller into a provider of security capabilities.
3. Deep Localization Operations Integrating into the Global Supply Chain
The current international trade environment is fraught with uncertainty. Tariff barriers and geopolitical factors pose significant challenges to the traditional “Made in China, exported overseas” model. An increasing number of overseas markets now demand supply chains achieve “localization”—meaning production and supporting services must be conducted directly in the sales region. Therefore, Hebi enterprises’ globalization strategy must evolve from simple product exports to deep overseas deployment and system output.
To circumvent trade barriers while maintaining control over core technologies, enterprises are advised to adopt a novel global division of labor strategy: a “domestic R&D core + overseas local assembly” model. The domestic base in Hebi serves as the stronghold for core technologies, retaining control over key processes, R&D design of high-end products, and manufacturing of high-value-added production equipment. For instance, leveraging Haichang Intelligent’s strengths in precision molds and automation equipment, core machinery could be manufactured in Hebi before being shipped to overseas factories. Overseas bases should establish assembly plants in key customer hubs like Southeast Asia, North America, and Europe, utilizing domestically exported equipment and process standards for final production. This approach satisfies overseas clients’ stringent demands for localized manufacturing while addressing the shortage of skilled technical workers abroad, enabling rapid response to overseas markets.
True globalization extends beyond establishing overseas factories; it demands that product design and service systems fully adapt to local markets. Enterprises must drive deep localization of products and services while integrating into local industrial ecosystems. They should avoid rigidly transplanting domestic product solutions during international expansion. For instance, given differences in charging standards and driving habits between European/American and domestic markets, companies need to collaborate with automakers to develop customized products specifically tailored to local demands. Leveraging Tianhai Group’s global network—which covers the world’s top eight automakers and operates 23 branches—alongside Hebi Hangsheng’s channel advantages in North America, the Middle East, and other markets, Hebi enterprises should actively drive upstream and downstream partners in the industrial chain to expand overseas together. The goal extends beyond exporting products to promoting Hebi’s mature automotive electronics supply chain and digital service standards globally. This aims to foster a deeply integrated, mutually beneficial ecosystem with local automotive industries worldwide.
VI. Biochemical-Environmental-Materials Enterprises: Demonstrating “Selfless Dedication” in Green Transformation
(1) Research Background and Objectives
Hebi has demonstrated remarkable strategic resolve and exceptional governance capabilities in advancing the development of bio-chemical-environmental-materials industries, including bio-manufacturing, new materials, and chemical fiber materials. This has laid a solid foundation for building the city’s industrial ecosystem. In recent years, the Hebi Municipal Party Committee and Municipal Government have prioritized the bio-chemical-environmental-materials sector as a key focus for future development. Through high-level planning to guide high-quality growth, they have driven the continuous expansion of industrial parks, extended industrial chains, and achieved significant leaps in park carrying capacity and comprehensive competitiveness. During this research visit to key enterprises such as Xintuo Yang, Zhongwei Chemical Fiber, and Meirui Technology, we gained a deeper appreciation for Hebi’s formidable strengths and positive momentum in industrial organization, park governance, and enterprise services. Each industrial park exhibits a development pattern characterized by clear planning, orderly distribution, complementary functions, and eco-friendly practices, fully reflecting the local government’s forward-looking industrial layout capabilities and pragmatic, efficient governance style.
Enterprises within the parks consistently report that Hebi has demonstrated rapid conceptual innovation, strong service orientation, and robust policy implementation capacity in park development and management in recent years. Whether in infrastructure enhancement, public service provision, project execution efficiency, or factor resource support, the parks adopt a proactive approach of “anticipating and fulfilling enterprise needs before they arise,” fully supporting the accelerated development of key industries. Continuous investments in road networks, energy access, wastewater treatment, logistics systems, and standardized factory construction enable enterprises to advance projects steadily within a low-cost, high-efficiency, and predictable production environment. Simultaneously, timely policy implementation, smooth communication channels, and precise project services have led businesses to widely affirm that “operating in Hebi feels reliable and confident.”
Throughout its promotion of the biochemical, environmental, and materials industries, Hebi maintains keen foresight into future industrial trends and robust support for major projects. Whether it’s Xintuoyang’s product iterations in green chemicals, Zhongwei Chemical Fiber’s technological breakthroughs in high-performance fibers, or Meirui Technology’s innovative explorations in material functionalization, all these advancements rely on the park’s long-term cultivation of an innovation-friendly environment and refinement of its policy framework. The park continuously builds specialized platforms, attracts high-caliber projects, and creates end-to-end service chains to provide sustained momentum for enterprise growth, elevating the industry’s structural sophistication and competitive edge. Simultaneously, Hebi prioritizes green development, rigorously enforcing regulatory standards in environmental protection, safety, and energy conservation. This governance system safeguards corporate needs while ensuring the park’s sustainable development, allowing enterprises to focus on production and innovation with confidence.
Throughout our research, we observed Hebi’s comprehensive leadership across four dimensions: policy, services, environment, and ecosystem. On one hand, its policy framework demonstrates enhanced precision and practicality. From industrial support and R&D incentives to talent recruitment and project construction assistance, Hebi offers systematic, integrated policy packages delivering tangible benefits to enterprises. On the other hand, the park’s services have evolved from reactive to proactive. Through dedicated enterprise specialists, regular visitation mechanisms, and collaborative advancement of key initiatives, enterprises no longer need to navigate bureaucratic processes back and forth, allowing them to focus more energy on production, operations, and technological R&D. Furthermore, the high-quality business environment has become a crucial component of the park’s competitiveness. Accelerated government services, optimized approval processes, and timely policy implementation make enterprises feel both comfortable and satisfied with their development in Hebi.
Figure 9: Nylon Town Exhibition Hall
It is not merely a series of impressive governance initiatives, but rather a mindset that permeates every level of government and the industrial park—one that is pragmatic, enterprising, and dedicated to serving enterprises. It is foreseeable that within this governance environment and industrial ecosystem, Hebi’s biochemical, environmental, and materials industries will continue to expand, the park’s platform capabilities will steadily enhance, and future industrial prospects will grow increasingly vast. Hebi possesses the foundation, capability, and confidence to forge new competitive advantages in China’s new materials and bio-manufacturing sectors, advancing toward a higher stage of development.
(2) Four Key Highlights of Hebi’s Park System Supporting Bio-Chemical-Environmental-Materials Industry Development
The local government employs a systematic approach to drive high-quality park development, efficiently allocating resources through coordinated planning. Industrial layouts in bio-manufacturing, new materials, chemical fiber materials, and other bio-chemical-environmental-materials sectors are forming a robust multi-point support and cluster-driven momentum. In recent years, Baoshan Economic Development Zone has leveraged leading enterprises like Meirui Technology to build a modern industrial platform integrating “new materials and chemical systems.” By extending and strengthening industrial chains, it has steadily advanced the structural upgrade of new materials. With continuously improving supporting facilities and more robust production factor guarantees, the zone has become one of the city’s key industrial development hubs. Hebi High-Tech Zone has positioned biomaterials manufacturing as one of its strategic priorities, focusing on cutting-edge manufacturing processes, key common technologies, and downstream material applications. The clustering effect of enterprises is gradually emerging, with the initial framework of key biomaterials manufacturing hubs taking shape. The Shanhai District Bioengineering Zone, spearheaded by Xintuoyang, is expanding its competitive edge through fermentation industry chains and biohealth products. Its fermentation processes, clean production capabilities, and industrial connectivity have significantly strengthened, laying a more solid foundation for regional coordinated development. The Sci-Tech Innovation City, leveraging Zhongwei Chemical Fiber, various R&D platforms, and pilot production bases, is accelerating the construction of a high-end, functional, and differentiated new materials system. Driven by innovation resources and R&D, it has become a vital component in the city’s innovation-driven development strategy. Each industrial park has developed distinct industrial characteristics based on its strengths. Through differentiated planning and coordinated development, they are gradually forming a three-dimensional spatial layout for the city’s biochemical and environmental materials industries.
Enhanced park governance stands as another shining example of Hebi’s industrial advancement. Upholding a “business-first” philosophy, local authorities continuously refine integrated, systematic enterprise service mechanisms. Park administrative services have seen upgraded efficiency and sustained quality improvements, with business satisfaction ranking first in the province for four consecutive years—fully demonstrating the growing dividends of reform and governance capabilities. The “Five-in-One” enterprise support mechanism received commendation from the State Council for its outstanding results, setting a benchmark for local governance. The park prioritizes streamlined processes and accelerated efficiency, with practices like “one-stop processing” and “full-process agency services” significantly facilitating project implementation, environmental impact assessments, and resource allocation. Enterprises report faster processing, lower costs, and improved overall experience. Concurrently, the local government implements a combined “chain chief + dedicated task force” service model for key enterprises and projects, providing end-to-end tracking from project introduction to construction and operation. This approach addresses corporate pain points while enhancing the overall resilience of industrial chains, offering robust institutional safeguards for stable and upgraded park economic performance.
In technological innovation, the parks have established a multi-point interconnected R&D system. Xintuo Yang has established a provincial-level pilot plant and a series of R&D platforms, making continuous progress in process optimization and product iteration, providing robust technical support for fermentation engineering and bio-health products. Zhongwei Chemical Fibers has engaged in deep cooperation with high-level research institutions such as the Chinese Academy of Sciences and Donghua University to jointly advance breakthroughs in new materials technology, forming an industry-influential R&D system in areas like differentiated spinning and high-performance fibers. Meirui Technology leverages its “first-of-its-kind” advanced processes to strategically deploy resource-based platforms, driving industrial upgrading through technological innovation and enhancing the local new materials industry’s competitiveness and national influence. The continuous refinement of innovation platforms has equipped the park with the capacity to absorb scientific achievements, convert research projects, and cultivate new productive forces, providing robust support for high-end, intelligent, and green development.
The concept of green development has been deeply integrated into the entire process of park planning and construction. All parks consistently adhere to the principle of “ecological priority and safety as the bottom line,” steadily enhancing ecological carrying capacity. Baoshan Economic Development Zone has comprehensively advanced the green transformation of chemical enterprises, elevating corporate safety and environmental standards through process upgrades, clean production, and intelligent management. Xintuo Yang’s attainment of national-level green factory certification demonstrates the park’s leadership in green manufacturing. All parks rigorously enforce dual bottom-line requirements for environmental protection and safety, refining monitoring systems, emergency response mechanisms, and daily management protocols. Institutionalized, digitalized, and professionalized governance approaches effectively safeguard ecological environments and production safety, establishing a robust barrier for the sustained, healthy development of park industries.
(3) Reflections on Enhancing the Capabilities of Hebi Industrial Parks and Promoting High-Quality Industrial Development
From a macro perspective, as Hebi advances its “3+3” dominant industrial layout, it prioritizes extending and strengthening industrial chains closely linked to environmental protection and circular economy—such as functional new materials, magnesium-based new materials, and polyurethane. By attracting flagship projects and establishing pilot testing platforms, the city has preliminarily established a development path that integrates industrialization with ecological sustainability. Simultaneously, the government has allocated substantial resources to ecological restoration, mine remediation, and green factory promotion. The ecological restoration demonstration project for abandoned mines has commenced across 10,500 mu (approximately 700 hectares), with multiple new national-level green factories and industrial parks established. Cumulative reductions in energy consumption intensity demonstrate initial success in industrial greening, creating both institutional and physical environments conducive to the growth of eco-friendly materials enterprises.
At the micro-level of enterprise mechanisms, Hebi’s “five-in-one” enterprise support system is particularly crucial for eco-environmental and materials enterprises. Environmental protection and ecological restoration projects often involve complex approvals, environmental impact assessments, safety production, land use, and supporting infrastructure. Hebi’s “one enterprise, one policy” approach and dedicated task force services provide early-stage policy alignment, financial support, and expedited approval channels, significantly reducing implementation costs and timelines for enterprises. Field research reveals that several high-investment, large-scale chemical and new materials projects—such as Meirui Polyurethane—received active government assistance in securing funding, supporting infrastructure, and environmental compliance during their local implementation. This tripartite collaboration model involving government, enterprises, and industrial parks effectively catalyzes upstream-downstream integration and fosters industrial ecosystems. Concurrently, the industrial park’s public service capabilities—including energy supply, wastewater treatment, hazardous chemical management, and emergency response systems—directly impact the sustainable production and social acceptance of environmental and materials enterprises. Hebi’s progress in building these public capacities provides fundamental safeguards for enterprises to achieve scaled production.
From an industrial chain perspective, many eco-friendly environmental and materials products cannot be independently completed by a single enterprise. A closed-loop ecosystem must be established spanning raw material supply, pilot testing, equipment manufacturing, downstream applications, and recycling. Hebi has already established several key elements across the raw material, manufacturing, and application segments. However, achieving a high-value-added closed-loop from raw materials to recycling still requires fostering the local clustering of more specialized, innovative small and medium-sized supporting enterprises to form comprehensive horizontal and vertical supply chains and service chains.
Additionally, in terms of talent and technical service systems, high-end eco-material R&D requires multidisciplinary professionals, while industrialization relies on equipment development, engineering teams, and third-party testing/certification capabilities. Hebi has made efforts to attract research institutes, universities, and scientific resources—including initiatives to introduce Chinese Academy of Sciences collaborations, university partnership platforms, and pilot plant bases. However, the eco-material sector still requires targeted recruitment and cultivation of applied talents and technical service institutions specializing in engineering technology, environmental science, and chemical engineering. Furthermore, the research revealed a notable shortfall in local higher education resources. Currently, Henan Information Science and Technology University has not yet been formally approved as an undergraduate institution, resulting in a lack of stable, high-quality talent cultivation bases.
(4) Hebi’s Industrial Transformation as Reference for Other Resource-Based Cities
Hebi’s transition from a coal-dependent resource-based economy to new productive forces in biotechnology, chemicals, environmental protection, and materials provides a replicable model for cities facing resource depletion or single-industry structure challenges. First, Hebi’s approach of leveraging leading enterprises to drive development is particularly suitable for these industries. These sectors typically involve long chains encompassing R&D, pilot testing, scale-up, and application. Hebi achieved a semi-closed industrial ecosystem spanning raw materials, testing, production, and application demonstration by prioritizing the introduction or cultivation of flagship projects with demonstration potential (e.g., polyurethane, large-scale pilot testing bases, magnesium-based materials) and implementing a “flagship + supporting enterprises” investment attraction strategy to foster upstream-downstream clustering. This offers insights for other cities: rather than starting from scratch and blindly expanding all links, they can focus on one or two key segments and leading enterprises, expanding gradually from point to line to area, prioritizing the formation of demonstrable and replicable industrial models.
Second, Hebi prioritized pilot testing capacity as a breakthrough point, a key lesson for successfully incubating biochemical industries. Many technologies—such as bioproducts, fermentation outputs, and novel bio-based materials—prove viable in laboratories but encounter multiple hurdles during scale-up, including equipment, process, and environmental approvals. Hebi has focused on establishing municipal-level pilot testing bases, encouraged the “laboratory + industrialization company” conversion model, and incorporated pilot testing portfolios and demand lists into investment promotion and support programs. This approach reduces corporate pilot testing costs and shortens industrialization cycles. For other resource-based cities, prioritizing investments in shared pilot testing platforms and third-party testing/scale-up service centers builds more sustainable long-term competitiveness than simply subsidizing individual enterprises.
Third, ecological and governance capabilities must advance in tandem with industrial capacity. Most biochemical and environmental materials industries fall under chemical engineering, bioprocessing, or materials processing, imposing heightened demands on water, air, solid waste treatment, and emergency management. Before advancing industrial projects, Hebi prioritizes park carrying capacity and green supporting infrastructure, including centralized hazardous chemical storage, reclaimed water reuse and high-concentration organic wastewater treatment, as well as public facilities for tailings and solid waste utilization. Simultaneously, the city strengthens river and lake management, mine ecological restoration, and urban greening to foster a robust ecological environment. Industrial expansion without sufficient environmental governance capacity and ecological red line safeguards would undermine long-term urban development and societal acceptance. Hebi’s investments in Qi River remediation, abandoned mine restoration, and green factory initiatives exemplify its development logic: building governance capacity before scaling up operations.
Fourth, comprehensive supporting policies and institutionalized service mechanisms are crucial for attracting and retaining biochemical, environmental, and materials enterprises. Hebi’s “five-in-one” service concierge system and “one enterprise, one policy” task force approach provide essential support for projects in these sectors, which often involve complex approvals and cross-departmental coordination. For bio-chemical industries, enterprises often require compliance across multiple regulatory fronts including environmental impact assessments, safety standards, land use, energy consumption quotas, and testing protocols. Local governments can significantly boost corporate willingness to establish operations and accelerate subsequent expansion by offering expedited processing channels, funding for pilot-scale testing, and risk-sharing mechanisms (such as pilot-scale risk funds or government procurement demonstration programs).
Fifth, talent and industry-academia-research collaboration are decisive factors in elevating biochemical, environmental, and materials industries to high-end sectors. The technological chain requires both R&D talent in molecular or process development and expertise in engineering scale-up and equipment manufacturing. Hebi has partially addressed local talent shortages by attracting universities, establishing municipal-level research platforms, and promoting joint pilot-scale bases between research institutions and enterprises. For similar cities, long-term policies for attracting, cultivating, and retaining talent (covering housing, children’s education, research start-up funds, etc.) are essential. Additionally, promoting university-enterprise joint training programs, establishing industry colleges, or implementing targeted job training initiatives will create a closed-loop system where local talent supply meets enterprise demand.
Sixth, a strategy prioritizing market expansion and demonstration applications can effectively overcome market acceptance barriers for green materials. Eco-materials and bio-based products often face high initial costs and insufficient customer awareness. Hebi leverages government collaboration with state-owned enterprises or key local companies to pioneer new materials through government procurement and demonstration projects (e.g., rail transit, lightweight components for new energy vehicles, urban infrastructure). This approach provides enterprises with initial funding while building product reputation and scale effects. By positioning public works and urban development projects as incubators for green materials—using demand to drive supply—the city can significantly lower market entry barriers during the commercialization phase.
Hebi’s experience underscores that government should act as a facilitator and integrator, not a micromanager. This involves focusing on critical industrial chain segments, building shared pilot testing and environmental governance capabilities, institutionalizing enterprise services, and fostering industry-academia-research collaboration with market-oriented approaches.
Hebi’s experience underscores that governments should act as facilitators and integrators, not micromanagers. By focusing on critical links in industrial chains, building shared pilot testing and environmental governance capabilities, institutionalizing enterprise services, fostering industry-academia-research collaboration, and establishing market demonstrations, the city has constructed an ecosystem for its biochemical, environmental, and materials industries. For other resource-based cities, this approach is both actionable and minimizes transformation risks. Hebi’s practice demonstrates that resource-based cities need not be defined by their legacy resources. By simultaneously advancing industrial chains and ecological governance, they can transform “old burdens” into “new momentum” and convert regional disadvantages into institutionalized competitive advantages.
VII. The Hebi Research Journey from an International Perspective
The Hebi research team also included international students from around the world. This report compiles and presents their reflections and insights from the field trip, showcasing diverse perspectives shaped by varied cultural backgrounds and experiences. Several students noted that while Hebi is not a traditional first-tier or major city, this very characteristic makes it a crucial case study for understanding China’s regional development and industrial division of labor.
Grace Chen observed that this visit provided her with a tangible understanding of how China is redefining the functions and roles of different cities in national development through continuous technological advancement and industrialization. She specifically noted that in the development strategies of several enterprises, Hebi does not serve as a core R&D hub but functions as a critical production and transformation node: preliminary R&D is predominantly concentrated in first-tier cities like Beijing or Shanghai, while Hebi provides the essential conditions for the large-scale manufacturing and practical implementation of technological achievements. This division of labor revealed to her that China’s technological advancement isn’t confined to a single city but relies on cross-regional collaboration to form complete industrial chains.
Murilo Rangel da Silva echoed similar observations. He noted that while Hebi may not stand out in terms of urban scale or international prominence, its highly specialized enterprises play vital roles within national and even global industrial systems, exerting an influence “far exceeding what one might expect based on the city’s size alone.” In his view, this phenomenon is not coincidental but stems from China’s strategic industrial planning, embedding specific cities within broader industrial networks.
Calvin Lin, drawing from personal experience, emphasized that Hebi revealed a model of local innovation and development he had never observed up close before. Through field visits to enterprises and factories, he gradually realized that many critical technological advances and industrial practices do not occur in the spotlight of first-tier cities, but rather in medium-sized cities like Hebi, driven by sustained investment and stable operations.
During visits to enterprises in aerospace, electronics, advanced manufacturing, and materials industries, students consistently focused on the question of “how is technology actually organized and implemented?” Chen noted that visiting rocket manufacturing facilities, standing within production spaces capable of housing rockets tens of meters long, gave her her first visceral sense of the awe-inspiring journey of high-end technology from blueprint to reality.
Lin highlighted scenes of highly specialized division of labor and collaboration within factories. He observed distinct departments fulfilling their respective roles, noting that the smooth progress of large-scale projects relied not only on advanced equipment but also on the sustained dedication and sense of responsibility of frontline workers.
During his visit to THB Electronics, Murilo was particularly struck by the relationship between automation systems and manual labor. He observed that the company’s development did not follow a simplistic machines-replacing-humans logic. Instead, it achieved comprehensive improvements in production precision, operational efficiency, and innovation capacity through the synergistic operation of technological systems and workers. In his view, this model reflects the company’s systematic consideration of organizational structure and human value when introducing automation technology.
Emma Datema provided additional insights on the industry visit from a curriculum integration perspective. She noted that the theoretical knowledge she had learned in class regarding satellites and missiles was concretely and intuitively demonstrated during this field trip. This transition from theory to practice enabled her to grasp more clearly how abstract concepts are applied in real-world industrial settings, thereby strengthening the connection between classroom learning and the real world.
Nick Toenshoff specifically mentioned that during the tour of the Hanyu Rocket Intelligent Base and discussions with company representatives, the hosts did not shy away from the international political context. Instead, they directly addressed the competitive and interactive relationship between China and the United States in the fields of aerospace and intelligent technology. This candid and realistic approach made him realize that companies must always factor in the international environment when conducting technological R&D and strategic planning. As an American student, he noted that this “non-academic perspective” from the industrial frontline differed from theoretical analyses or policy texts encountered in the classroom. Instead, it was an experiential summary grounded in the practical advancement of projects and real-world constraints. This experience helped him grasp more concretely that geopolitics is not an abstract concept but directly influences technological development paths and corporate decisions through mechanisms like export controls, technical standards, and resource acquisition. Bryson Frank reflected that while he was previously more familiar with the development narrative of U.S. private aerospace companies, this visit shattered his stereotype that “China’s aerospace sector is primarily government-led.” He observed that even with government equity participation, relevant Chinese enterprises still operate as private entities, navigating a balance between national objectives and market logic.
Beyond industrial visits, multiple students emphasized in their feedback the importance of cultural and historical itineraries for understanding contemporary China. Emma detailed her reflections after visiting Confucian cultural sites and the Red Flag Canal. She noted that the spirit of self-reliance embodied by the canal helped her grasp why this project holds such significance in local historical memory. Frank reflected from a “historical scale” perspective. As a student from a nation with less than three centuries of history, he experienced a profound temporal dissonance walking through buildings, caves, and ruins that predated his country’s existence. This experience prompted him to reconsider the role of historical accumulation in shaping societal cognition and developmental trajectories.
Natural landscapes within the city, mountain treks, and historical spaces provided emotional and cognitive respite from the intensive corporate visits, enriching the research experience. The shared living and discussions over these days transformed the research from mere “observation” into a learning journey characterized by a sense of community.
VIII. Ensuring the “Channel Water” Flows Steadily Toward Future Industries
Reflecting on this systematic research trip to Hebi and Anyang, we essentially followed two threads: one industrial, tracing the spatial trajectory of “chips—aerospace—automotive electronics—biochemical environmental materials—cultural tourism” to witness how a resource-based city shifted its development path from “coal dependency” to “innovation-driven growth” over decades; The other was spiritual, beginning at the Red Flag Canal nestled in the Taihang Mountains to understand how a generation forged enduring values that continue to shape their world under extreme conditions. Where these two threads converge in today’s Hebi, we witness not an abstract “model,” but a city’s earnest quest to define its purpose and direction amid real constraints and historical memory.
Hebi’s transformation carries no halo effect nor miracle narrative. It resembles a slow yet steady structural evolution: batches of enterprises refining technological chains, industrial parks bolstering public capabilities, and policies patiently laying institutional groundwork. Whether it’s Loongson exploring an independent CPU packaging and testing system rooted in local scenarios, or Tianzhang Satellite and Hangyu Rocket attempting to rebuild the “satellite development-launch-application” chain in an inland city, or Tianhai Group and Haichang Intelligent repeatedly breaking through in the niches of traditional manufacturing, each case unfolds without dramatic flair, yet reveals a shared logic—not pinning hopes on leapfrog miracles, but relying on sustained investment to grind “impossibilities” into ‘options’ and transform “arduous paths” into “inevitable ones.”
If this logic resembles the Red Flag Canal, it’s not because Hebi deliberately replicates history, but because both faced similar predicaments: scarce resources, path dependencies, tense external environments, and high technological ceilings. Often, “giving up” seemed the logical choice. Yet precisely in these moments, whether a region can firmly grasp its “initiative” often determines its shape a decade later. Those who built the canal knew mountains wouldn’t split open merely because they wished it so. Similarly, today’s local administrators and entrepreneurs understand no industry will spontaneously emerge simply because they desire transformation. The value of the Red Flag Canal lies not in providing a “spiritual emblem,” but in offering a simple yet profound insight: when confronting structural challenges, the most reliable approach is often not to circumvent them, but to confront them head-on; not to wait for external rescue, but to forge your own path through organizational capability and collective action.
Hebi’s current industrial landscape is the tangible embodiment of this “organized initiative.” Whether through the comprehensive upgrade of industrial park governance systems, the strategic patience of continuous investment in high-risk sectors, or the collaborative efforts where “neighboring floors represent upstream and downstream partnerships” among diverse enterprises—these collectively form a new model of local development. It neither blindly pursues scale nor indulges in short-term gains, but instead strives to maximize controllable variables and minimize uncontrollable pressures within a city’s sphere of influence.
Of course, Hebi’s future remains fraught with challenges. Whether in hard technology sectors like chips and aerospace, globally integrated industries such as automotive electronics, or fiercely competitive fields like biochemicals, environmental materials, and cultural tourism, Hebi inevitably faces intensifying internal competition, limited resources, and escalating rivalry. Yet just as the Red Flag Canal never halted due to “insurmountable difficulty,” today’s industries will not cease progress because of “uncertainty.” More importantly, Hebi has demonstrated through practice that resilience for a city is not innate—it is accumulated through the choices made by successive generations. When such choices remain steadfast and consistent during critical moments, they forge a competitive edge more enduring than resource endowments.
This research reveals that the transformation of a resource-based city hinges not on its past prosperity, but on its willingness to embrace structural adjustment as a long-term endeavor in the face of scarcity; to view high-risk sectors as potential future solutions; to regard public governance capacity as the primary driver supporting enterprises; and to harness spiritual resources as the foundation for weathering uncertainty. In essence, this city is addressing a larger question: Facing the challenges of the new era, can we maintain an active stance of “not waiting, not relying, not complaining, and not retreating”?
At the source of the Red Flag Canal, such a stance once transformed the destiny of a land; in today’s Hebi, it is being rewritten in new ways.
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